The KVP, or Kisan Vikas Patra, is one of the most secure investments you can make today. It is backed by the Indian Government and promises secure returns that double over a particular duration. Let us learn more about it in this article.
What it Actually Is?
Kisan Vikas Patra can be defined as a small savings scheme for Indian citizens. The scheme was launched in 1988 with the aim of inculcating financial prudence and discipline among the masses. It doubles your investment within a specified tenure, which is currently 124 months (10 years and 4 months). Investments are thus relatively safe and low-risk.
Let us now look at the investment modalities of this scheme.
Step 1: Select Your Investment Mode
Kisan Vikas Patra can be purchased from your nearest post office or an authorised bank branch. Depending on your specific requirements and location, you can opt for whichever seems more convenient.
Step 2: Gather Your Documents
The following documents are usually required for opening your KVP account:
- Proof of identity – PAN Card, Aadhaar Card, Passport, Voter Card, etc.
- Proof of address – Utility bills, Government-issued documents showing the residential address, Passport, etc.
- Passport-sized photographs for identification purposes.
Step 3: Complete Applying for the Scheme
Once all the documents are in place, go to your nearest bank or post office branch and seek the KVP form to apply. It will require details like your address, name, nominee information, and the amount that you wish to invest in the scheme.
Step 4: Submit Your Application and Make Payment
Fill out the application form and submit it along with all the necessary documents. You will then have to pay the amount that you wish to invest. Payments over Rs. 50,000 must be made via cheque, demand draft, or online transfer. The minimum investment amount is Rs. 1,000, and investments must be in multiples of Rs. 1,000. Once you make your payment successfully, you will get the KVP (Kisan Vikas Patra) certificate as investment proof.
Step 5: Keep Your Certificate Securely
Once you get the KVP certificate, ensure that you store it securely. It is essential since it can be used to claim maturity amounts or cancel investments prematurely, if applicable.
Step 6: Track the Investments
KVP comes with a 30-month lock-in period, or roughly 2.5 years. However, you can retain it until the investment matures within 124 months (10 years and 4 months) to obtain great returns. Keep tracking your investments, and once they reach maturity, go to the bank or post office to collect funds. If your KVP is linked to a savings account, the maturity proceeds will be credited directly.
Conclusion
Kisan Vikas Patra is a reliable scheme for people who want to invest in low-risk ventures with a fixed rate of return. As this is a government-backed scheme, you have complete assurance of securing your future.
