Kisan Vikas Patra (KVP)

Learn about Kisan Vikas Patra (KVP) - Benefits & Details.
Kisan Vikas Patra
4 mins
22 April 2024

The Kisan Vikas Patra (KVP), a government-backed savings scheme, could be a great addition to your investment portfolio. Known for its guaranteed returns and potential to exponentially grow your investment, Kisan Vikas Patra scheme offers a stable and reliable way to build wealth. Let us understand its eligibility criteria, features, interest rates, and everything you need to know before investing.

What is Kisan Vikas Patra?

Launched in 1988, the Kisan Vikas Patra (KVP) scheme started to encourage long-term saving habits, especially among farmers. While this focus inspired its name, but now anyone meeting the eligibility criteria can invest in KVP. This post office scheme offers assured returns over a fixed tenure of 115 months and can be purchased as a certificate from post office and selected public sector banks.

While the KVP provides a secure investment option, it is important to consider other avenues to diversify your long-term savings portfolio. Fixed deposits offer similar security with the added advantage of flexible tenures and potentially higher interest rates.

Also read: NPS National Pension Scheme

Types of Kisan Vikas Patra scheme accounts

  • Single holder type: This type of KVP account is designed for individuals. An adult can open a Single Holder account for themselves or purchase a KVP certificate on behalf of a minor child.
  • Joint A type: This KVP account is held by two adults together. The maturity proceeds of the KVP certificate are payable to both the holders jointly, or to the surviving account holder in case of the other's death.
  • Joint B type: Similar to Joint A Type, this KVP account is also held by two adults. However, the crucial difference lies in the payout. In a Joint B Type account, the maturity amount is payable to either of the two account holders, or to the survivor.

Eligibility criteria for Kisan Vikas Patra scheme

Eligibility criteria for the Kisan Vikas Patra scheme depend on the following:

  • Citizenship: Must be an Indian citizen.
  • Age: Adults (18 years or above).
  • Minor: Guardian can purchase KVP certificates on behalf of minors or those of unsound mind.
  • Restrictions: Hindu Undivided Families (HUFs) and Non-Resident Indians (NRIs) cannot invest in KVP.

How to get Kisan Vikas Patra certificate

A. Steps to get Kisan Vikas Patra offline

  1. Visit your nearest post office.
  2. Ask for the KVP application form (Form A) and fill the details required.
  3. If you are investing through an agent, they must complete Form A1U+002e.
  4. Provide a copy of an identity proof for the KYC process.
  5. Submit the completed forms and deposit the amount you want to invest.
  6. Once your documents are verified and the deposit is processed, you will receive your KVP certificate.

B. Steps to get Kisan Vikas Patra online

  1. Visit the India Post website.
  2. Choose Kisan Vikas Patra (KVP) and download Form A.
  3. Complete the form with your personal information, investment amount, payment method, and certificate type. Include nomination details and submit it to the post office along with the required KYC documents.
  4. After document verification, deposit the amount either in cash, through a pay order, a cheque, or a demand draft in the name of the postmaster.
  5. You will immediately receive the KVP certificate unless you pay by cheque or demand draft.

Also read: Senior Citizen Savings Scheme

Benefits of KVP Scheme

Benefits of the Kisan Vikas Patra (KVP) scheme include:

  1. Low barrier to entry
    With a minimum investment of just Rs. 1,000 and no maximum limit, KVP is accessible to investors of every level. Whether you are starting with small, regular contributions or have a substantial sum to invest, KVP provides a space for everyone to grow their savings safely.
  2. Flexibility
    Although intended for long-term holding, KVP does offer some flexibility. After a set lock-in period i.e., 2.5 years, you can prematurely withdraw your deposited amount, although certain penalties will apply.
  3. Taxation
    Withdrawals made after the maturity of the Kisan Vikas Patra are not subject to Tax Deducted at Source (TDS). It is important to note that the KVP scheme does not qualify for any tax deductions specified under Section 80C.
  4. Loan against KVP certificate
    Your KVP certificate is not just a savings scheme; it can also be used as collateral to get a loan. These loans often offered at lower interest rates, making them a cost-effective borrowing option.

Key differences between Kisan Vikas Patra (KVP) and Bajaj Finance Digital FD

Interest rate

7.5% (as of February 2024)

Up to 8.85% p.a.


115 months

12 months to 60 months

Minimum investment

Rs. 1,000

Rs. 15,000

Maximum investment

No maximum limit

Rs. 5 crore


Extremely safe due to government backing

AAA rated by financial agencies like CRISIL and ICRA


Also read: Post Office Saving Schemes

Documents required to get Kisan Vikas Patra certificate

Documents required to obtain a Kisan Vikas Patra (KVP) certificate typically include:

  • KYC document (Aadhaar card/ PAN card/ Voter ID card/ Driving license/ Passport)
  • Form A, you can get it from post office
  • Form A1, if the application is made through an agent


When applying for KVP certificate, you can nominate someone by filling out Form C. This ensures that if something happens to the KVP account holder, the nominee can receive the benefits.

Even if you did not nominate during the purchase, you still have the option to do it later before the certificate matures. Just complete Form C and submit it to the post office.

For certificates held by or on behalf of a minor, nominations are allowed. Any changes or cancellations to the nomination can be made using Form D.

Kisan Vikas Patra (KVP) helpline

Customer care toll free number: 1800-266-6868


Kisan Vikas Patra presents a compelling option for disciplined investors seeking guaranteed returns and reliable wealth accumulation over time. Understanding its features, interest rates, and eligibility criteria can help you take informed decision.

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As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.