Kisan Vikas Patra Online Application Process

Kisan Vikas Patra (KVP) was a savings scheme launched by India Post in 1988 for farmers in India but discontinued in 2011 following its use as a money laundering tool. In 2014, it was relaunched and opened for all. The scheme aims to provide fixed returns at low risk. It is a long-term instrument that doubles your investment in the given tenure. Here are some of the features of KVP:

You can apply to Kisan Vikas Patra online by downloading the form from the official post office website and submitting it to the bank/post office along with the KYC documents and duly filled form. Banks such as PNB and SBI, offer KVP through their branches. Continue reading if you want to know more about how to apply for Kisan Vikas Patra online.

How to Apply for KVP Online?

You can obtain the application form by visiting the nearest post office or authorised bank branch. You can also download the Kisan Vikas Patra online form by clicking here. You must fill out this form and attach the relevant KYC documents.. You will then have to visit the nearest post office or bank and submit the form along with the amount to be invested in the form of a cheque/demand draft/cash/pay order. You must address the form to the postmaster. The post office will then scrutinise the form, and if the payment is in cash, the certificate will be issued immediately. In case the payment is not done in cash, you will receive a provisional receipt, which you can exchange for the certificate later. You can also opt to receive your certificate on your registered email id.  

As of now, there is no direct provision for buying Kisan Vikas Patra online. However, downloading the form and visiting the post office after filling it significantly reduces the time spent waiting in long queues.

Documents Required to Open a KVP Account

You will have to share the documents listed below along with the KVP application form:

1. Proof of identity
2. Proof of address
3. Two passport-sized photographs 
4. In case the account is on behalf of a minor, then their proof of age
5. If the investment amount is more than Rs. 50,000, then you have to carry your PAN card
6. If the investment amount is more than Rs. 10 lakh, you will have to take pay slips and ITR

Rate of Interest 

The interest rate offered on a Kisan Vikas Patra is reviewed and updated periodically by the Ministry of Finance. The current interest rate is 7.5%, compounded annually.

The accumulated interest is paid out to the individual at the maturity date along with the principal amount. If the KVP has matured and the individual does not collect the repayment, simple interest at the rate equal to the current interest rate of the post office savings account is paid to the individual.

Final Thoughts

Applying for this savings certificate scheme is easy and convenient, thanks to the Kisan Vikas Patra online form. This scheme is a secure way of investing for the long term with no upper limits. It pays a fixed rate of return and is, therefore, an ideal instrument for those looking for stable returns. Depending on the deposit amount, it can also be used as collateral to secure a loan. Further, there is no tax on the repayment of the proceeds. You can also nominate someone to your KVP account by filling out a nomination form. The nominee will receive the proceeds of your account in case of your untimely death. All in all, it’s an excellent instrument to meet long-term investment objectives almost devoid of any risks. 

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