All you need to know about the Kisan Vikas Patra scheme

What is Kisan Vikas Patra? Kisan Vikas Patra (KVP) is a popular and safe small-savings instrument that doubles the invested money in 10 years and four months at the current rate. This scheme is backed by the government. After withdrawing it, the government relaunched it on November 18, 2014. The money raised through the KVP is used in welfare schemes for farmers. Features of Kisan Vikas Patra Eligibility: One has to be a resident Indian to purchase this product. Entry age: No age limit is mentioned. Minimum investments: Minimum: Rs 1,000. Maximum: There is no upper limit. Other aspects: Premature encashment is allowed. Account-holding categories: Individual, Joint, Minor through the guardian, and Minor above 10 years. Nomination: The facility is available for existing investors. Exit option: Premature withdrawal is permitted at a cost for investors. Interest rate for Kisan Vikas Patra The interest rate for KVP is 6.90 per cent compounded yearly. Maturity period of Kisan Vikas Patra The maturity period may change based on rate changes. Currently, it is 124 months; 10 years four months. Capital protection and inflation protection The capital in the KVP is completely protected, as the scheme is backed by the Government of India. The KVP is not inflation protected. This mea

This article was originally published on January 07, 2022.