All About Kisan Vikas Patra – A Good Choice?
Kisan Vikas Patra or KVP is a certificate scheme from the INDIAN POST OFFICE. The best part is it doubles a one-time investment in a period of around 9 years and 10 months which makes 118 months. Being instance, a KVP for INR 5000 will get you a corpus of INR 10,000 post-maturity. Let’s figure out more about this. Here:
Kisan Vikas Patra – Explaining
India post-introduced the Kisan Vikas Patra as a small saving certificate scheme in the year 1988 with the objective to encourage long-term financial saving habit in people. As per the 2014 scheme amendment, the tenure of the scheme is 118 months which makes 9 years and 10 months. Also, the minimum investment is INR 1000 & there is no upper limit; and , if you opt for lumpsum investment, you can get double amount at the end of the tenure period (118 months). Basically, it was meant for farmers to help them save for the long-term, therefore, this name formed. Now, it’s available for everyone. KVP is a low risk savings platform, wherein you can safely park your money for some time-period.
Who all can Invest in the KVP Scheme?
Any Indian citizen who is above 18 years can buy a KVP scheme from the nearby post office. People from rural India with no bank account find this amazing. You can also buy for a minor or jointly. Make sure you mention the date of birth of the minor & the name of the guardian/parent. A trust can also buy one, but not an NRI or an HUF. Also, if you are looking for tax-saving funds, then ELSS has got you covered.
Features of KVP
- Capital Protection: A safe mode of investment & not subject to market risks. Also, you’ll receive the investment & gains when the tenure ends.
- Guarantee Returns: Regardless of the fluctuations in the market, you will get the guaranteed sum.
- Tenure: The maturity time-period is for 118 months. The maturity proceeds of KVP will continue to accrue interest until you withdraw your amount.
- Taxation: It doesn’t come under the deductions of Section 80C & the returns are taxable. But TDS is exempt from withdrawals only after the maturity period.
- Pre-mature Withdrawal: You can withdraw the amount only after 118 months. But, the lock-in-period is 30 months.
- Ease & Affordable: KVP is available in denominations of INR 100, INR 500, INR 1000, INR 5000, INR 10,000, & INR 50,000 for the investment. No maximum limit.
- Loan: You can use the KVP certificate as security or collateral to avail secured loans. The rate of interest is comparatively less for such loans.
- Nomination: Collect the nomination form from the post office; fill-up the information of the nominee, and, if you are nominating a minor, prefer mentioning the date of birth.
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