Kisan Vikas Patra

Launched by India Post in 1988, Kisan Vikas Patra was initially a scheme small saving scheme. The scheme was originally launched exclusively for farmers; nevertheless, the scheme is now applicable to all Indian citizens.

The objective of Kisan Vikas Patra is to encourage and promote financial discipline and its importance in people. The tenure of the scheme is applicable for 118 months, i.e., 9 years and 10 months. The minimum investment scheme available under this scheme is Rs. 1000; moreover, there is no upper limit applied. In order to eliminate any possible events of money laundering, in 2014, the government compulsorily demands PAN card proof for the investment of over Rs. 50,000. To invest anything more than Rs. 10 lac, applicants must submit valid income proofs, such as salary slips, bank account statements, and ITR documents.

Eligibility of Kisan Vikas Patra

Under this scheme, any Indian citizen who is over 18 years old can apply for the Kisan Vikas Patra Scheme at the nearest post office. An applicant can buy one for a minor or together with another adult member. Kisan Vikas Patra is a great option for risk-averse people with plenty of money.

Benefits of Kisan Vikas Patra

In spite of the current market situation, a guaranteed scheme is made available for applicants.

The scheme is the safest measure of capital protection and investment. At the end of the tenure, gains are guaranteed. The current rate of interest for the scheme is 7.7%.

The scheme does not fall under the category of 80C deductions, and the returns are entirely taxable. 

The lock-period is a minimum of 30 months; thus, premature withdrawal is applicable. Moreover, applicants can avail nomination services, Kisan Vikas Patra certificate issuance, and loan against the certificate.

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