Kisan Vikas Patra (KVP) Scheme: Eligibility, Features, Benefits and How to Invest

12^th Jan 2026...

Published By : Team 811

Kisan Vikas Patra (KVP) Scheme Latest News

For the quarter Oct to Dec 2025, the government has kept the Kisan Vikas Patra interest rate unchanged at 7.5% p.a.
In 2025, the deposits under KVP continue to double in about 115 months (≈ 9 years 7 months) at the current rate.
Investors remain assured of stable and government-backed returns. It makes KVP a reliable long-term savings option in uncertain financial times.

Kisan Vikas Patra (KVP) Scheme Key Takeaways

KVP interest rate offers a fixed 7.5% p.a., which is compounded annually.
Minimum investment is ₹1,000, with no upper limit. It is suitable for small and large investors alike.
Money invested under KVP doubles in around 115 months at the current interest rate.
The scheme is government-backed and low-risk, making it a safe option for long-term savings.

The KVP scheme is a government savings scheme that helps you grow your money safely over time. It offers guaranteed returns and is a good option for anyone who wants steady and risk-free savings. This scheme is easy to understand and suitable for both new and experienced investors.

What is The Kisan Vikas Patra or KVP Scheme

KVP is a small-savings scheme launched by India Post in 1988. After being discontinued in 2011, it was reintroduced in 2014 with revised terms.

The main aim of KVP is to encourage long-term financial discipline among individuals by offering a safe and government-backed savings instrument that delivers guaranteed returns over a fixed tenure.

Who Can Benefit from the KVP Scheme

Individual adult citizens of India who wish to invest for medium-to long-term.
People with limited risk appetite who prefer guaranteed returns over market-linked fluctuations.
Families or individuals seeking a safe instrument to accumulate a corpus over 8 to 10 years.
Guardians or parents wishing to invest on behalf of a minor who is above a certain age.
Trusts are eligible to invest in the KVP scheme.

Key Features and Benefits of Kisan Vikas Patra (KVP) Scheme

The Kisan Vikas Patra scheme helps people grow their savings safely with guaranteed returns from the government. The key features of the scheme include:

KVP offers a fixed interest rate of 7.5% per year and the interest is compounded annually.
At the current Kisan Vikas Patra interest rate, your money doubles in about 115 months, which is roughly 9 years and 7 months.
They offer flexible investment amounts. You can start investing with ₹1,000 and there is no upper limit. For investments above ₹50,000, PAN details are required.
You can open a single account, a joint account (Joint A or Joint B) or an account on behalf of a minor through a guardian.
KVP certificates can be bought from any post office in India, making it very convenient.
You can add a nominee and the certificate can also be transferred between post offices or individuals if needed.
Since KVP is a government-backed small savings scheme, the returns come with a sovereign guarantee, making it a very safe investment option.

Kotak811 provides a convenient digital savings account that you can open easily from home. It can help you manage your money smoothly when you invest in KVP and need quick access to funds at maturity. Feel free to reach out to us for any support you need.

Kisan Vikas Patra (KVP) Scheme Eligibility Criteria

The applicant must be an Indian resident.
Any Indian citizen aged 18 years or above.
A guardian can invest on behalf of a minor or a person of unsound mind.
For joint accounts, up to three adults can jointly invest under either “Joint A” or “Joint B” option.

Exclusions

The scheme is not tax-efficient. The interest income from KVP is taxable under “Income from Other Sources”. There is no tax deduction benefit under Section 80C for investments in KVP.
The scheme may not suit those seeking short-term liquidity, as returns are optimal only upon maturity or after significant lock-in.
Individuals who are not residents of India cannot purchase KVP certificates.
A minor cannot open a KVP account in their own name, though an adult guardian can purchase one on their behalf.

Documents Required for KVP

To open a KVP certificate, the typical documents required include:

Valid identity proof
Address proof
Filled application form
Date of birth proof (especially if investing on behalf of a minor)
Passport-size photograph

Application Process of Kisan Vikas Patra (KVP) Scheme

Here is how you can apply through the KVP post office:

1. Registration

Visit any authorised post office.
Ask for Form A to start the registration process.

2. Application

Fill the form with your details.
Submit it along with your KYC documents (ID proof, address proof), DOB proof (for minors), and a photograph.
Make the minimum investment of ₹1,000 or more.

3. Verification

The post office will check your documents and payment.
Once approved, you will receive your KVP certificate. Keep it safe for maturity or withdrawal.

Note: KVP is generally not available online and must be applied for offline at post offices.

Check the Status of the KVP Scheme

You can check the status of your KVP mainly through the post office where it was issued. Some CBS-enabled post offices may also allow limited online checks.

Checking Status at the Post Office

Visit the post office that issued your KVP certificate.
Carry your KVP certificate and a photo ID.
The staff will help you check details such as status, issue date etc.

Checking Status Through India Post Online Services

Visit the India Post e-banking and log in.
If your account is linked, you may be able to see your KVP holdings or transaction details.
Availability depends on whether your post office is connected to CBS.

Note: Available only if your issuing post office is CBS/e-banking enabled.

Benefit Disbursal

When the KVP reaches its maturity period, the full amount is paid directly to the investor at the post office where the certificate was issued. The investor must show the original KVP certificate and a valid ID proof to receive the payout.
If the investor passes away before the certificate matures, the nominee or legal heir receives the maturity amount. They need to submit the death certificate, KYC documents and the original KVP certificate to claim the funds.
The post office informs the claimant about the approval or rejection of the claim through the usual communication method. The maturity payment is processed as per the official Post Office rules.

Conclusion

Kisan Vikas Patra remains one of India’s most popular small-savings instruments, offering a simple, safe, government-backed way to grow a lump sum into a substantial corpus over around a decade. For investors who want safety and predictable outcomes rather than market-linked fluctuations, KVP continues to be a dependable choice.

FAQs on Kisan Vikas Patra (KVP) Scheme

1. Is KVP safe? Is my principal amount secure?

Yes. KVP is backed by the Government of India under the Small Savings framework, making it a sovereign-guaranteed, low-risk instrument.

2. Can I encash or withdraw before maturity?

Early withdrawal is generally not permitted before the lock-in period (2 years 6 months), except in exceptional cases like the death of an account holder or court orders.

3. Is the interest from KVP taxable?

Yes. Interest earned under KVP is taxable under “Income from Other Sources.” There is no tax deduction benefit under Section 80C for KVP investments.

4. How many KVP certificates can I hold at once?

There is no limit on the number of KVP certificates one can hold. Investors may purchase multiple certificates.

5. What happens if I lose my KVP certificate?

You need to report the loss at the issuing post office; they will follow official procedures for re-issuance or duplicate certificates, per Post Office / National Savings norms.

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Disclaimer
This article is intended for general informational purposes only. The information provided is based on publicly available sources and government notifications as available at the time of writing. Government schemes, eligibility criteria, benefits, coverage limits, and implementation details are subject to change, modification, or discontinuation at the discretion of the respective government authorities without prior notice.
Kotak Mahindra Bank Ltd. (“Bank”) does not guarantee the accuracy, completeness, or current validity of the information contained herein and does not assume any responsibility for discrepancies arising due to subsequent policy updates or revisions. The views expressed in this article do not necessarily reflect the views of the Bank or its employees and should not be construed as legal, medical, financial, or professional advice.
Readers are advised to verify the latest details directly from official government portals or authorized sources before relying on or acting upon the information provided. Kotak Mahindra Bank Ltd., its directors, employees, or contributors shall not be liable for any loss or damage arising from the use of or reliance on the information contained in this article.