Kisan Vikas Patra (KVP)

6 mins read
by Angel One
Kisan Vikas Patra (KVP) is a secure Indian government scheme popular among farmers, offering fixed interest rates and doubling investment potential.

The Kisan Vikas Patra scheme stands out as a secure savings avenue, allowing individuals to steadily grow their money without concerns about potential risks. Presently, it ranks among the most popular government-sponsored savings initiatives in India, aimed at fostering a culture of savings and promoting prudent investment practices.

For those interested in investing in either the Indira Vikas Patra or the Kisan Vikas Patra scheme, it is essential to acquire comprehensive knowledge about the program and gain a clear understanding of its mechanics to maximise its benefits.

What Is Kisan Vikas Patra? 

Kisan Vikas Patra (KVP) is a government initiative introduced in India in 1988. Its primary objective was to promote the culture of small savings across the country, enabling a diverse range of investors to secure their financial futures and work towards a better tomorrow.

This small savings scheme encouraged people in India to prioritise their long-term financial goals. Those who meet the eligibility criteria can invest in KVP, and according to available information, investments in this scheme are expected to double in approximately ten years and four months, translating to a 124-month period for doubling your investment. Therefore, it’s essential to review the eligibility requirements to determine if you qualify for this opportunity.

Kisan Vikas Patra is considered one of the safest investment options among low-risk avenues. As a result, investors can confidently allocate their funds to this scheme for a predetermined duration. Nevertheless, it’s advisable to familiarise yourself with the details of KVP scheme accounts to make a well-informed investment decision.

What Is The Eligibility Criteria For The Kisan Vikas Patra Scheme? 

If you intend to participate in the Kisan Vikas Patra scheme online, it’s crucial to carefully review the following eligibility criteria. Failing to meet even one of these criteria may result in ineligibility for the scheme. Therefore, before initiating any KVP documentation, it’s advisable to explore the Kisan Vikas Patra online platform for more detailed information.

  1. The applicant must hold Indian citizenship.
  2. Adults have the option to apply for the KVP certificate on behalf of a minor.
  3. Individuals seeking to enrol in this scheme must be at least 18 years old.

Benefits Of The KVP Plan 

Here are some of the benefits of the Kisan Vikas Patra plan:

  • Fixed Interest Rate

A fixed interest rate ensures that your investment has a predetermined chance to double over a specific period. This is why individuals who invest in Kisan Vikas Patra can expect their principal amount to grow substantially in approximately 124 months.

  • Long-term Savings Opportunity

This scheme allows you to commence saving with a minimum deposit of ₹1,000, which is an affordable way to initiate long-term investments for your future financial goals. Ultimately, the value of your investment doubles, enabling you to meet your financial objectives in a timely manner.

  • Comprehensive Security

As a government-backed initiative, Kisan Vikas Patra offers a high level of reliability. It provides diverse investors with a secure avenue to deposit their funds, ensuring maximum safety and security. Being a government-owned scheme also minimises the risk of fraudulent activities.

  • Fixed Lock-in Period

Individuals who struggle with long-term savings can rely on Kisan Vikas Patra due to its fixed lock-in period. This restriction prevents individuals from accessing their savings for other purposes easily. As a result, the fixed lock-in period effectively assists individuals in achieving their future financial goals with minimal disruptions, as their savings cannot be prematurely withdrawn.

  • Collateral for Loans

Obtaining a loan becomes more straightforward with Kisan Vikas Patra since most banks and financial institutions accept the KVP certificate as collateral.

  • Non-transferable Benefits

The benefits of KVP can only be claimed by the account holder, and they cannot be transferred to another individual unless certain conditions are met. In such cases, permission must be granted by the postmaster at the Kisan Vikas Patra post office for the transfer to occur.

Documents Required For Availing A Kisan Vikas Patra In 2023

Once an individual has successfully met the eligibility criteria for Kisan Vikas Patra, they will be required to provide specific documents. These documents listed below must be submitted to the KVP scheme authorities when making the application. Therefore, it is essential to have these documents with you at the time of applying:

  1. In case the application is made through an agent, Form A1 must be submitted for the application extension.
  2. Form A is mandatory for submission either at an Indian Post Office branch or designated banks.
  3. Various KYC (Know Your Customer) documents, including Voter’s ID, PAN card, Driver’s licence, and Aadhaar card, are essential to carry. Additionally, a Passport can also be used as proof of identification for Kisan Vikas Patra.

How To Transfer Kisan Vikas Patra Account? 

When an investor wishes to transfer their KVP certificate, it is advisable to provide written consent, which should be submitted to the designated post office officer. It’s important to note that the person initiating the transfer must be an Indian and meet all the prescribed eligibility criteria for KVP certification.

When it comes to transferring Kisan Vikas Patra certificates from one individual to another, the process follows slightly different rules. In such cases, a handwritten letter is required, which should be submitted to the post office. These circumstances warrant such transfers:

  1. Transferring ownership from a single owner to joint owners.
  2. Changing ownership from joint owners to a specific individual among the group of owners.
  3. Transferring the certificate from the deceased owner’s name to their legal heir.
  4. Transferring ownership from the current owner to a legal guardian or trustee.

Loan Against KVP 

Loans against Kisan Vikas Patra (KVP) come with important considerations. First, the KVP certificate must be issued in the individual’s own name. Secondly, loan repayment is obligatory within the KVP scheme’s duration. The loan amount and margin requirements are determined by the bank and depend on the maturity and value of the KVP investment. It’s crucial to highlight that loans against KVP can be used exclusively for personal and business purposes. Lastly, there are various charges associated with these loans, including differing interest rates, to be aware of when considering this financial option.


Kisan Vikas Patra (KVP) offers a secure and reliable savings avenue for individuals in India, promoting long-term financial growth and stability while accommodating loans for personal and business needs. Its fixed interest rates and government backing make it a popular choice among investors seeking stability and growth in their investments.


What is the minimum investment amount for Kisan Vikas Patra (KVP)?

The minimum deposit required to invest in KVP is Rs. 1,000, making it an affordable option for savers

Can I withdraw my KVP before its maturity period ends?

While premature withdrawals are allowed under certain conditions, they typically occur after a specified lock-in period and may result in reduced returns.

Are the returns from Kisan Vikas Patra taxable?

Yes, the interest earned on KVP is taxable, and investors need to report it as part of their taxable income.

Can KVP certificates be transferred to someone else?

Yes, KVP certificates can be transferred under specific circumstances, including changes in ownership, with proper documentation and approval from the post office authorities.