Any adult individual can purchase Kisan Vikas Patra (KVP) in his or her name (single holder type) or jointly with another adult individual with the condition 'jointly or survivor' (A type) or 'either or survivor' (B type). Besides, parents and guardians can also purchase on behalf of a minor. Even trusts are allowed to purchase these certificates. NRIs are not permitted to invest in KVP.
Application for the certificate can be made to all departmental post offices authorised to transact saving bank business.
The application can be made in the prescribed form along with the payment that has to be deposited with the post office directly or through its authorised agents.
There is no investment limit in this scheme and individuals can invest any amount they wish. Minimum investment required is Rs 100.
Investments can be made in the denominations of Rs 100, Rs 500, Rs1,000, Rs 5,000, Rs 10,000, from any of the post offices and in denomination Rs 50,000 from all head post offices.
This scheme doubles the investor's money in 8 years 7 months with an option of premature encashment.
The scheme matures in 8 years 7 months. For example if an individual buys the certificate by investing Rs 1,000 his money will become Rs 2,000 on maturity.
Tax benefit
Investments in KVP do not offer any tax benefits to the investors.
Loans
Kisan Vikas Patra has been declared as "Public Security" by the Government of Maharashtra. Certificate holders can avail loan from banks against the certificates.
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