Why to invest in Kisan Vikas Patra

Kisan Vikas Patras or KVPs were introduced by the Government of India, years ago, to encourage the saving habits of individuals which doubles the money invested in say eight years and 7 months (which changes from time to time).  These are marketed  through the Directorate of Small Savings and Post offices wherein large number of population of the country visit are identified for selling these certificates.  There is a lockin period of two and half years after which, the KVPs can be en-cashed along with interest that is accrued thereon.  These Certificates are available in the denominations of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000, Rs. 10,000 and Rs. 50,000 and the maturity value of the KVP is written on the face of the certificate.  The revenue that the Government obtains on KVPs will be utilized towards welfare schemes of Farmers community.  The various salient features of KVPs are:

• They are accepted as collateral security by institutions for any loan sanctioned.
• It is one of the highly security investment.
• There is no ceiling limit for buying KVPs
• It can be bought jointly bought by two adults
• Any Indian Citizen can buy KVPs either in his name or in the name of a minor
• Companies, Institutions, NRIs or HUF (Hindu Undivided Family) are not eligible to invest in KVPs

One should however note that with the raising inflation, the value of KVPS grind down which cannot be avoided.

Why to invest in Kisan Vikas Patra

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