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4 Things to know about Kisan Vikas Patra 2020


KVP is a one-time investment issued by Government of India, which is available on all post offices and major banks of India with a tenure of 9 years and 10 months. In KVP scheme the investor will get double of the invested money at the time of maturity. The minimum investment is caped under Rs 1000 and the upper limit is not fixed for the investors. Originally, it was planned for farmers to make it possible for them to save their money for a long term basis.


In 2014, the government made PAN Card mandatory proof of investments above Rs 50,000 to avoid money laundering risks. You will have to submit proofs of income (salary slips, bank statement, ITR paper etc) to deposit a minimum of Rs. 10 lakhs and above. It is a minimal-risk investing platform where you can comfortably invest your money for a certain period of time. It is also compulsory to provide AADHAR number as evidence of the account holder's identity.

4 Things to know about Kisan Vikas Patra 2020

1. Eligible Investors

  • The investor must have a minimum age of 18 years or above to invest in KVP scheme
  • The scheme is also available for minors and joint account holders
  • The scheme is also eligible for Trusts except HUF or an NRI
  • KVP is eligible for investment in the amounts Rs. 1000, Rs. 5000, Rs. 10,000 and also Rs. 50,000.

2. Features of KVP

  • KVP is just like a "Small Savings Scheme," such as PPF, SCSS, etc., and as it is a government scheme the returns are guaranteed without any risk.
  • It's a secure mode of investment, and you'll get the return of your investment at the end of the tenure
  • With the marginal rate of income tax, the return is completely taxable as the scheme doesn't come under the 80C deductions.
  • No TDS is deducted in this scheme
  • Kisan Vikas Patra's current interest rate is 7.7%, which will vary on your period of investment
  • You'll get more returns on your investment by compounding the interest.
    4 Things to know about Kisan Vikas Patra 2020
  • Get cheaper loans against KVP from any bank of India
  • The scheme can be transferred from one post office to another without any cost
  • The tenure of the scheme is 118 months with a lock-in period of 30 months.
  • Late enclosure of the scheme is not permitted, in case of death of the investor
  • Get the nomination facility by submitting the nomination form at the post office.
  • You will get KVP certificate instantly if the amount is paid by cash
  • Get KVP Identity slip which has the details like KVP Certificate, KVP serial number, the amount of return at the time of maturity and more

3. Merits and Demerits of KVP

Below given points are some pros and cons, which is important to keep in mind before investing in KVP


  • Guaranteed returns by the government without any risk
  • Loans can also be used as collateral
  • Get high interest rates as compared to any other FD provided by the bank
  • Investment option is available in Rs. 100, Rs. 500, Rs. 1000, Rs. 5000, Rs. 10,000 and also Rs. 50,000


  • No online option is available to open KVP account, you have to visit the nearest post office for the same
  • You have to complete some paper works and documentation in order to transfer KVP account from one post office to another
  • The tenure is fixed which means you have to wait for the tenure for maturity.
    4 Things to know about Kisan Vikas Patra 2020

4. How to Invest in KVP?

  • Visit the nearest post office and fill the Form A
  • In case you are investing in KVP through an agent then you have to submit Form A1
  • Submit identity proof (PAN, Aadhaar, Voter's ID, Driving License or Passport) to complete the KYC process
  • Once the KYC process is over you will get the KVP certificate instantly.
  • Keep the KVP certificate safe, as it is mandated to submit the certificate at the time of maturity.

About the Author

Vipul Das is writing finance and business related articles from the last 1 year for Goodreturns. He has done BCA and has a strong knowledge in finance field. You can connect with him on Facebook and Twitter.

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