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Kisan Vikas Patra scheme: Should you register for it?

Saving funds and investing them in the right avenues is one of the most significant habits of those having comfortable financial lives. Financial advisors suggest practising the habit of saving early on to reap better benefits with age. Realising the importance of saving and investing, the government of India has consistently been introducing various plans catering to the public’s varied needs.

One such program is the Kisan Vikas Patra scheme. In today’s article, we will go through the details of the scheme to help you ascertain whether you should put your money in it.

What is Kisan Vikas Patra scheme about?

Before we dive into KVP, let’s understand what small saving schemes mean. Small saving schemes or small saving certificate schemes are an initiative by the Indian Government to promote the habit of saving among citizens. It is a collection of nine different schemes with different interest rates. The commonality among them is the low exposure to risk, making these small saving schemes a safe investment option.

KVP is one such option introduced by India Post, a government department under the Ministry of Communications. The full form of KVP is Kisan Vikas Patra. It was introduced in 1988, with the objective of offering citizens an avenue to start long-term savings with low capital investment.

The scheme was originally made to encourage financial discipline among farmers, hence the name. The scheme is, however, open to all eligible citizens today, irrespective of their occupations.

Details of the KVP scheme

  • The scheme allows a single holder or up to three joint holders for one account.
  • Kisan Vikas Patra’s minimum amount is ₹1,000. There is no restriction on the upper limit of the deposit. KVP requires a lumpsum deposit by the account holder.
  • The deposit amount should always be in multiples of 100.
  • The post office revises the interest rate and KVP’s duration periodically. 
  • Irrespective of Kisan Vikas Patra’s maturity, residents can opt for premature closure after completing 2.5 years from the opening date.
  • A KVP account is transferred only upon the demise of holders or by the court’s order.
  • Upon depositing money in KVP, the holder gets a certificate stating the details of the investment. The certificate can be redeemed at the time of maturity.

As of 01 January 2024, the scheme has announced an interest rate of 7.5% compounded annually, with a maturity period of 115 months (9 years and 7 months). Any amount invested will double itself by the end of the 115th month.

Benefits of the scheme

  • The most important feature of the KVP scheme is that the amount invested doubles at the time of maturity. So, investors who invest ₹10,000 earn ₹20,000 upon maturity.
  • Since the minimum investment amount is low, the scheme is accessible to all sections of people.
  • The scheme is owned by the government and has a fixed rate of interest throughout its tenure. Hence, the risk of default while paying interests and repaying the principal is nil. The scheme remains unaffected by market fluctuations, making it an ideal choice for those with low-risk tolerance.


  • Anybody who is a resident individual of India
  • Above 18 years of age 
  • A guardian can open a KVP account on behalf of minor residents or those with an unsound mind
  • KVP does not apply to members of HUFs (Hindu Undivided Family) or NRIs (Non-Resident Indians)

Registering for the scheme

Investors can opt for this scheme through the post office or authorised public sector banks like the State Bank of India, Union Bank of India, Bank of Baroda, Punjab National Bank, ICICI Bank, etc.

How to buy Kisan Vikas Patra online?

  • Depending on their convenience, residents can download the application form from India Post’s website or the bank’s online portal by searching the ‘KVP application form’. (India Post: https://www.indiapost.gov.in/VAS/Pages/Form.aspx#SavingCertificates)
  • All the required details, including the holder’s details, nominee details, the deposit amount, etc., must be filled in.
  • The filled form must be submitted to the post office or bank with KYC documents like Aadhar and PAN card.
  • Upon the completion of KYC, the deposit amount can be given either in cash, cheque or a demand draft. Those paying in cash receive the certificate immediately. Banks and post offices send the certificates over emails upon request.

How do you apply for Kisan Vikas Patra offline?

Unlike downloading the application form through the portal, the offline application requires residents to physically collect the form from banks or post offices. After filling out the form, the process remains the same for online and offline applications.


Kisan Patra scheme is a savings scheme by the government that provides a safe and secure investment option for the country’s citizens. It is ideal for all those looking for long-term investment avenues, with low-risk exposure and a stable return. So, if you have a lumpsum amount that you wish to double in the next few years, check out the KVP scheme!


Which is better: Kisan Vikas Patra or FD?

Kisan Vikas Patra and Fixed Deposits are both safe and long-term investment options for investors. 
– Unlike KVP, FDs are not backed by the government. Hence, KVP is more suitable for those looking at the highest level of safety. 
– For investors looking at some flexibility, FDs might be a better choice, as their lock-in and pre-mature withdrawal terms are more easygoing.

Is KVP exempt from tax?

Despite the benefits, a major disadvantage of KVP is that it does not provide any tax exemptions or deductions. The returns are entirely taxable, however, withdrawals post maturity are exempt from TDS (Tax Deducted at Source). So, for those seeking deductions under 80C and other sections of the Income Tax Act, KVP may not be ideal.

Is KVP a good investment?

Whether KVP is a good investment or not depends on one’s financial goals, risk tolerance, expected returns, etc. KVP is ideal for investors looking for a safe and stable income. However, for those looking at rapid growth and high returns, stock market and mutual fund investments might suit better.

Can we take a loan on KVP?

Yes, you can take a loan against KVP. The certificate must be pledged as the collateral based on which financial institutions grant loans.

What if Kisan Vikas Patra is lost?

Investors can apply for a duplicate certificate after filling out the application form and providing the necessary details. A duplicate certificate will be granted if the issuing authority is satisfied with the details. 

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