Invest in Kisan Vikas Patra (KVP), money will double in 124 months

If you are looking for a risk-free investment option, Kisan Vikas Patra (KVP) can be a great option for you. It is a government scheme that provides safe and stable returns. By investing in KVP your money can double in 124 months (10 years 4 months). This scheme is ideal for investors who want to avoid stock market volatility.

Available in post offices and banks

Earlier this scheme was launched especially for farmers, but now it is available to all Indian citizens. This is a fixed return scheme, that is, investors can know in advance how much amount they will get back.

• You can invest in KVP in post offices and branches of selected banks.
• The objective of this scheme is to protect people’s savings and provide attractive returns on it.

How to invest in KVP?

Required conditions and amount for investment:

• Minimum investment amount: ₹1,000
• Maximum investment amount: No limit.
• PAN card is mandatory for investments above ₹50,000.
• KYC process will have to be completed through Aadhar card.
• Only Indian citizens can invest in this scheme.

Lock-in period and other benefits

The lock-in period of KVP is 30 months (2.5 years). After this period, the investment amount can be withdrawn if needed.

• This scheme provides the facility of nomination. In case of death of the investor, the nominee can easily get the amount.
• Loan can also be taken from the bank by mortgaging the KVP certificate.

Interest rate and tax rules

• Interest Rate: KVP is currently offering interest of around 7.5%.
• However, this interest income is taxed. The tax rate depends on the tax slab of the investor.
• There is no benefit of tax deduction under section 80C on investment in KVP.
• TDS is not applicable on maturity amount.

Why is Kisan Vikas Patra an ideal investment?

1. Government Backed: This scheme comes with a government guarantee, keeping your money completely safe.
2. Fixed Returns: It provides stable returns compared to the stock market.
3. Simple Process: The investment process is extremely easy and there are no complex conditions.
4. Flexibility: Withdrawal and nomination facility after 2.5 years makes it even more attractive.
5. Loan facility: Loan can be taken against the pledge of certificates, which makes it useful for investors.