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There are nine government-sponsored post office saving schemes, and Kisan Vikas Patra is one of them. Get to know everything about KVP and benefits attached to it.
Post office savings schemes have been popular among Indians for their low risk and simple investment terms. The post office offers a list of products that provides risk-free and reliable returns on investment. These saving schemes are associated with central government and are operated via 1.54 lakh post offices all over the country.
Kisan Vikas Patra is one of the saving schemes offered by post offices in India. It is a small saving scheme certificate introduced in the year 1988, but was discontinued in the year 2011. However, with improvisation and a few amendments, the scheme was reintroduced in the year 2014, to encourage long-term investment. KVP was primarily introduced for farmers to help them save for long-term, but now, the scheme is open for all. Kisan Vikas Patra is an ideal saving scheme for those who are looking to invest their money with a reliable source.
It is a low-risk saving instrument where you can easily park your money without the risk of losing it. The scheme comes with a lock-in period of 2 years and six months. You can withdraw your money once the lock-in period is over.
The following are the eligibility criteria to avail KVP.
KVP is run as per the norms of Indian government and offers guaranteed returns. Some of the key features of KVP are:
Following are the benefits of Kisan Vikas Patra saving scheme.
Yes, you can avail loan against the Kisan Vikas Patra scheme, if you fulfil the following criteria:
In case you have lost or destroyed your KVP investment booklet, you have an option to get a duplicate booklet from the post office. There is no other way to claim the investment under KVP, except for holding this booklet.
Despite a few challenges, KVP is all set to rock the financial market as the Indian financial market has a good appetite for traditional small saving schemes. It is beneficial for people in lower-income tax slab who would like to hedge the risk against falling interest rates of fixed-income investments.
KVP seems to be a beneficial option as we are slowly entering the low-interest regime. At the same time, it is crucial to check if it makes sense to invest or not. Because in personal finance space, every product is designed keeping a specific segment in mind, and one shoe doesn't fit all.