kisan vikas patra loan facility

kisan vikas patra loan facility

Kisan Vikas Patra loan facility: KVP is a government-sponsored savings scheme! Which was initially specially prepared for the farmers! But now it is open to all! Although the name of the scheme (Kisan Vikas Patra Loan Facility)

suggests that it is for farmers alone! You can also invest in the scheme! Under this scheme, you can make a minimum investment of Rs 1,000 to buy a KVP certificate. This amount is invested for a minimum period of 112 months (9 years and 4 months).

In this article made me perfect we will give you full information about the Kisan Vikas Patra loan facility so let’s start reading.

kisan vikas patra interest rate 2021

kisan vikas patra loan facility

Kisan Vikas Patra investment can be done in multiples of Rs 1,000 only! And there is no upper limit on investment, which means you can invest as much as you want! Unlike other government-sponsored savings schemes, KVP (KVP Loan Facility) does not provide any tax benefits. Currently, the interest rate on savings in the KVP scheme is 7.6 percent per annum! This means your investment will almost double at the time of maturity!

kvp interest rate

kisan vikas patra loan facility

KVP Scheme (Kisan Vikas Patra Loan Facility) is a low-risk savings tool that is safe! Because it is supported by the government! Certificates are issued for the amount invested in the scheme. The minimum amount to invest in this scheme is Rs 1,000.

The investment is to be made in multiples of Rs.1,000. The scheme (Kisan Vikas Patra) allows you to purchase a certificate for yourself or on behalf of your child or jointly with any other adult. The interest on investment in the KVP Scheme certificate is decided by the Ministry of Finance and is not directly related to market risks.

Kisan Vikas Patra Eligibility

  • Any Indian citizen who is above 18 years of age can invest in this scheme (KVP Scheme) and buy a certificate.
  • There is no upper age limit for the scheme, which means senior citizens can also invest in the scheme.
  • This scheme allows minors to purchase and purchase KVP certificates.
  • Minors can invest only in case the consenting adult buys the certificate on their behalf.
  • NRIs are not allowed to invest in the KVP scheme.
  • Apart from NRIs, Hindu-Integrated Families cannot buy KVP certificates.
  • This scheme allows trusts to buy KVP (Kisan Vikas Patra Yojana) but companies cannot buy KVP certificates.

lock-in period

The minimum lock-in period in the KVP scheme is 30 months or two and a half years. If the holder of the certificate decides to withdraw the money after two and a half years of purchasing the certificate! So no penalty will be imposed! The interest earned on the amount will also be given to the investor. Any encashment before two and a half years can either invite penalty or give rise to lesser interests.

If you withdraw within one year of purchase! Then the penalty will be levied, and you will not get any interest! If you withdraw after one year but before two and a half years, no penalty will be levied, but the interest you get will be reduced. Both the interest rate and maturity period (Kisan Vikas Patra Yojana) are subject to change as per the prevailing interest rates in the market.

kisan vikas patra loan facility Certificate : Kisan Vikas Patra Loan Scheme

All Kisan Vikas Patra Yojana customers are eligible for loans at reduced rates by using their certificates as collateral or security. This means that anyone holding a KVP certificate in his name! You can apply for a loan! Every bank accepts KVP certificates as collateral or security. Provided that the name on the KVP (Kisan Vikas Patra Loan Facility) certificate matches with the applicant. Loans will be given only for personal and business purposes, such as business expansion or child marriage.

Kisan Vikas Patra Interest Rate

Kisan Vikas Patra Interest Rate 2021: Kisan Vikas Patra is a post office savings scheme! Which was first started by the Indian Post in 1988. After this, this central government scheme (KVP Scheme) will double the principal amount in 124 months. Accordingly, the farmer growth rate is 6.9% per annum. KVP interest rate calculator is used to check the principal amount at a particular point in time. However, people will not get any farmer development tax benefit through this scheme (Kisan Vikas Patra Yojana).

Kisan Vikas Patra Scheme Interest Rate

Kisan Vikas Patra Yojana was closed in the financial year 2011 and it was started again in the budget 2014. Due to the fear of money laundering, the KVP Post Office scheme was closed as it was a carrier device. Thereafter, people can invest as well as receive the maturity amount in cash. People can compare Post Office Schemes before investing. The closure of KVP increases the savings of small investors. After this, the government has restarted this scheme (KVP Scheme) with some modifications.

Kisan Vikas Patra KVP Certificate Types

Accordingly, the available certificates of Kisan Vikas Patra are as follows:-

  • Single Holder Type KVP Certificate – Govt. A minor or an adult on behalf of minor issues such as a certificate (KVP) for himself.
  • Joint one type KVP certificate – This KVP is issued jointly to 2 adults which is payable to both the holders jointly.
  • Joint B Type KVP Certificate – This KVP is issued jointly to 2 adults and is payable to any one of the joint account holders.

Indian residents can only buy KVP certificates! And can buy and not invest in an NRI KVP certificate!

Kisan Vikas Patra KVP Post Office Scheme Amendment

Central Govt. The following amendments have been proposed while relaunching the KVP scheme:-

  • People will not receive the maturity amount in cash, but now it will be received directly in their post office savings account.
  • Thereafter at the time of purchase of KVP, candidates will not have to follow any KYC norms.
  • In addition, Kisan Vikas Patra’s interest amount will be subject to a deduction of 10% TDS.
  • Beneficiaries will get only KVP certificates from post offices but later they can get them through designated branches of nationalized banks.

Who can open a KVP account in Post Office

  • a single adult
  • Joint account (up to 3 adults)
  • A guardian on behalf of a minor or a person of unsound mind
  • A minor above 10 years in his name!

Kisan Vikas Patra Interest Rate

A frequent question arises that in how many months does KVP double the principal amount! The maturity period of Kisan Vikas Patra Yojana is 10 years and 4 months (124 months). Accordingly, on maturity, the principal amount gets doubled. As per the KVP interest calculator, the effective kvp interest rate turns out to be 6.9% (from 1st January 2021 onwards).

If the KVP certificate holder dies! If a candidate pledges to be a gazetted officer of the government (Post Office) Also if the KVP certificate is sold by a Court of Law. Thereafter, candidates can calculate their amount after a particular period through the KVP calculator / KVP interest rate calculator.

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