Reintroduced in 2014, the Kisan Vikas Patra (KVP) is a government-backed savings scheme aimed at encouraging long-term financial discipline among small investors by offering assured and attractive returns. Designed to cater to risk-averse individuals, especially in rural and semi-urban areas, the primary objective of KVP is to double the invested amount in a fixed period, making it a reliable option for wealth growth.
With an interest rate of 8.7% per annum, the investment under KVP doubles in 8 years and 4 months (or 100 months). One of the key features of this scheme is its flexibility in liquidity. While the full maturity is reached after 100 months, the scheme allows investors to encash the certificate after a lock-in period of 2 years and 6 months, and subsequently at any block of six months, based on pre-determined maturity values.
Kisan Vikas Patra is not only a low-risk investment option but also a tool to promote the culture of regular savings, especially in sections of society that may not actively participate in the stock market or other volatile financial instruments. It is available at post offices across India, and the certificate can be purchased by individuals, including joint holders and even on behalf of minors.
By offering guaranteed returns and flexible encashment options, KVP serves as a simple yet effective instrument for safeguarding and growing savings, particularly for individuals seeking steady returns with minimal risk.
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