Kisan Vikas Patra is a Government of India (GoI) investment product that provides an interest rate of 8.25 percent per annum. It also offers tax benefits under Section 80C and income tax benefits under Section 80CCC. While buying a KVP certificate, you will be required to verify your identity and address details through the KYC (Know Your Customer) verification process before depositing any money.
What is KVP?
Kisan Vikas Patra (KVP) is a Government of India (GoI) savings instrument and one of the popular investment options available in the market. KVP is a certificate of deposit issued by the GoI. The rates of interest vary depending on whether you are investing in Rs 500 or Rs 1 lakhs and it offers 18-24 months tenure with maturity periods ranging from 3 to 5 years.
What is the interest rate for KVP?
The interest rate for KVP differs based on the financial year.
- The interest rate for KVP-1 (2017-18) is higher than that of KVP-2 and so on.
- In the first year of the issue, it has a fixed rate of 8% per annum compounded annually with effect from January 1st to December 31st every year. This will be reduced by 2% in each subsequent year up to the fifth year after which it will revert to 8%.
Purchasing a KVP certificate requires a mandatory KYC verification process.
Kisan Vikas Patra (KVP) is a savings certificate that has been introduced by the government to promote financial inclusion in India. The government has provided subsidies for the issuance of these certificates, which can be utilized by farmers across different states.
The KYC verification process requires you to submit a copy of your PAN card, Voter ID, and Aadhar Card if you are eligible for it. This ensures that no one can fraudulently claim benefits using fake documents or identities.
If you don’t have any such information yet, then we recommend applying for one now so that when it arrives at your doorstep sometime soon, there won’t be any issues with issuing this document due to its high importance which requires mandatory verification before being issued!
It is important to note that you will be required to submit your original PAN card, Voter ID, and Aadhar Card as part of the KYC process. If you don’t have any such information yet, then we recommend applying for one now so that when it arrives at your doorstep sometime soon, there won’t be any issues with issuing this document due to its high importance which requires mandatory verification before being issued!
Kisan Vikas Patra eligibility criteria
Kisan Vikas Patra, also known as KVP, is a certificate issued by the government of India. It is one of the most popular investment options available in the market. The certificate can be issued in the name of an individual, two adults, or minors as per their age criteria.
The benefit of this savings instrument is that it offers an interest rate on deposits for ten years at 8% p.a., which means that you will receive an 8% annual return on your investment during this period (if all goes well).
The certificate is issued in the form of a financial instrument, which means that it can be sold at any time. The minimum amount for investment in this certificate is Rs. 10,000 and you can also invest any amount above it. The interest earned on your investment will be paid on the maturity date as per the terms and conditions of KVP.
Where can you invest in KVP?
The Kisan Vikas Patra (KVP) is a Government of India (GoI) savings instrument issued by the GoI. It’s also known as a National Savings Certificate and it can be purchased in the name of an individual, two adults, or minors.
You must also ensure that you invest in Kisan Vikas Patra online only through authorized banks that are listed by the GoI or the Government Of India.
The banking facility for Kisan Vikas Patra online is provided by all the authorized banks that are approved by the GoI. The banks provide a wide range of services to their customers, including investment in KVP through their respective websites. This will ensure transparency and security while processing your application.
Key Points to Know About KVP
Kisan Vikas Patra (KVP) is a government savings instrument that helps you save money for your future. It’s one of the most popular investment options available in the market, and it has been providing interest rates for over 20 years now. The interest rates for KVP vary based on the financial year you invest in, so we will explain them below:
- In 2019-2020, your earning rate is 8% per annum on maturity with no cap limit.
- For 2020-2021 and 2021-2022 respectively, your earning rate would be 7% per annum on maturity with no cap limit.
The interest rate for KVP is one of the highest in the market. However, there are some conditions that you need to fulfill before investing in KVP: You must be an Indian citizen aged between 18 and 60 years, You can invest up to Rs 1 lakh in a financial year through your employer or a bank or post office.
Benefits of KVP
Kisan Vikas Patra is a loan scheme that helps farmers with a sustainable long-term solution by providing them with long-term loans at lower interest rates than other conventional bank loans. The interest rate on Kisan Vikas Patra loans is lower than any other bank loan or any other government loan, including the one for housing finance.
The loans provided under this scheme are not only cheaper than most other bank loans but also easier to get approved. The loans are given at a fixed rate of interest without any collateral. This means that the amount you borrow is not dependent on how good your credit history is or whether you have collateral to pledge as security against repayment of your loan.
The Kisan Vikas Patra is a very popular investment option and one of the most reliable options in the Indian financial market. The instrument offers attractive returns by offering a fixed rate of interest for 10 years. It is also available for purchase through banks, which means that you can invest in it online or offline and your money will be safe. With this knowledge at hand, you can now choose whether or not to invest!
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KVP - Kisan Vikas Patra Eligibility, Interest Rates & Benefits in 2022 FAQs
There are no restrictions in terms of the amount that can be invested in Kisan Vikas Patra.
The maturity period for KVP is 113 months from the date of issue of KVP certificate.