Kisan Vikas Patra (KVP) is a popular savings scheme run by the Government of India. This scheme gives people a chance to invest money for a long period and double their savings. KVP was launched in 1988 and re-launched in 2014. The main objective of this scheme is to encourage small investors and farmers to save. KVP is a safe and low-risk investment option that offers guaranteed returns. This scheme is available through post offices and select banks. In 2025, KVP is giving investors a chance to double their money. Let’s know about this scheme in detail.
What is Kisan Vikas Patra (KVP)
Kisan Vikas Patra is a fixed deposit certificate scheme run by the Government of India. It is a low-risk investment option that guarantees investors to double their money in a fixed period. A person investing in KVP is issued a certificate which he can encash after the maturity period.
Key Features of KVP Scheme
| Description | Information |
| Name of the scheme | Kisan Vikas Patra (KVP) |
| interest rate | 7.5% per annum (compounded annually) |
| Maturity Period | 115 months |
| Minimum Investment | ₹1,000 |
| Maximum Investment | No Limit |
| Lock-in Period | 30 Months |
| tax benefits | Deduction up to ₹1.5 lakh under Section 80C |
| Guarantee | By the Indian Government |
How to invest in KVP Scheme
- By visiting the post office: Go to your nearest post office and fill the KVP form.
- Through Bank: KVP is also available in some select Government Banks.
- Online: You can apply online by visiting India Post website.
Documents required to buy KVP
- Identity Proof (Aadhaar Card, PAN Card, Voter ID)
- Address Proof
- Passport size photo
- Enrollment Form (optional)
Benefits of KVP Scheme
- Guaranteed Returns: Your money doubles in 115 months.
- Safe Investment: Being backed by the government it is a safe option.
- Tax benefits: Tax deduction of up to ₹1.5 lakh under section 80C.
- Flexible investment: You can invest any amount starting from ₹1,000.
- Easy Transfer: KVP certificate can be easily transferred.
KVP Interest Rate
The interest rate of Kisan Vikas Patra in 2025 is 7.5% per annum. This interest rate is applicable on the basis of annual compounding. This means that interest gets added on your investment every year and next year you get interest again on that entire amount (principal + interest).
How does money get doubled in KVP
- Suppose you invest ₹10,000.
- At the rate of 7.5%, this amount will become ₹20,000 in 115 months (approximately 9 years 7 months).
- This increase is due to compound interest.
KVP Eligibility Criteria
- Any Indian citizen can purchase KVP.
- Individuals above 18 years of age can purchase KVP in their own name.
- For minors, their guardians can purchase KVP.
- A maximum of three adults can together purchase a joint KVP.
- HUF and NRIs cannot invest in this scheme.
KVP Maturity Period
The maturity period of Kisan Vikas Patra is 115 months. After this period your investment doubles. However, you can withdraw your money even after 30 months, but then you will get less interest.
Premature Withdrawal
- KVP can be encashed after completion of 2.5 years (30 months).
- The interest rate on premature withdrawal is lower.
- This feature can be useful in case of an emergency.
KVP vs other investment options
- KVP vs FD (Fixed Deposit)
- The interest rate in KVP is high.
- FD has the option of flexible tenure.
- KVP vs PPF (Public Provident Fund)
- PPF has a long tenure (15 years).
- The interest received on PPF is tax free.
- KVP vs NSC (National Savings Certificate)
- The duration of NSC is 5 years.
- The interest rates in both are almost the same.
Terms and Conditions of KVP Scheme
- Minimum investment: ₹1,000 and in multiples of ₹100 thereafter.
- Maximum Investment: There is no upper limit.
- Nomination: One or more persons may be nominated.
- Joint Holders: A maximum of three adults can jointly purchase KVP.
- Transfer: KVP certificate can be transferred to another person.
- Loan: Loan can be taken against KVP certificate.
KVP Tax Benefits
- Section 80C: Tax deduction of up to ₹1.5 lakh on investment in KVP.
- TDS: TDS is not deducted on interest earned on KVP.
- Income Tax: Income tax has to be paid on the amount received on maturity.
Online Application Process for KVP Scheme
- Visit the official website of India Post.
- Select “Kisan Vikas Patra” option.
- Download and fill the KVP form.
- Scan the required documents.
- Upload the form and documents.
- Pay online.
- Submit the application and get the acknowledgement.
Source & Reference: https://librecruitmentbirbhum.in/post-office-kvp-scheme-2025/
KVP Scheme FAQs
Yes, KVP is backed by the Government of India and is considered very safe.
Yes, KVP can be redeemed after 30 months, but the interest rate will be lower.
No, TDS is not deducted on interest earned on KVP.
A guardian can buy KVP in the name of a minor.
Yes, a duplicate certificate can be obtained by applying at the post office.