Are you ready to turn your contribution of ₹200 per day into a lumpsum of ₹1,46,000 at maturity? Though may sound impossible but with proper planning, you can grow your wealth and secure your tomorrow. Kisan Vikas Patra scheme offers a flexible way to save for your future.
In this blog, you will come across various ways to grow your investments with the Kisan Vikas Patra. Check KVP interest & maturity amount calculations using online KVP calculators.
Understanding Kisan Vikas Patra (KVP)
The Kisan Vikas Patra scheme, popular since 1988, is a smart investment option for offering flexible avenue for farmer’s to save up on future needs. It is a small savings certificate offered by the Indian government. It was first introduced as a farmer’s scheme, which has now expanded to benefit anyone who can invest in this scheme to have a corpus over the long term.
Things to Know About KVP Scheme
The Kishan Vikas Patra interest rate is revised quarterly. The current interest rate is 7.5% p.a. for the Q1 FY 2024-25, i.e. quarter starting from 1 April 2023 to 30 June 2024, compounded yearly. By compounding the interest, you will receive more returns on your deposit.Here are the highlights of Kisan Vikas Patra:
| Kisan Vikas Patra Highlights | |
| Interest Rate | 7.5% (compounded annually) |
| Tenure | 115 months |
| Lock-in Period | 7 months to 9 years |
| Investment Amount | Minimum: Rs. 1,000 | Maximum: No limit |
Also Read: Which is Better? SIP or Lumpsum to make 1 Crore
Kisan Vikas Patra Scheme Calculation
The table below shows an overview of Kisan Vikas Patra Scheme calculation of the maturity amount and year based on your investment:
| Maturity Year | Investment Amount (Rs.) | Maturity Amount (Rs.) |
| 2033 | 10,000 | ₹20,000 |
| 2033 | 15,000 | ₹30,000 |
| 2033 | 20,000 | ₹40,000 |
| 2033 | 30,000 | ₹60,000 |
| 2033 | 40,000 | ₹80,000 |
| 2033 | 50,000 | ₹1,00,000 |
| 2033 | 60,000 | ₹120000 |
| 2033 | 70,000 | ₹140000 |
| 2033 | 80,000 | ₹160000 |
| 2033 | 90,000 | ₹180000 |
| 2033 | 1,00,000 | ₹200000 |
Note: The maturity amount and maturity year depend upon the tenure period (115 months) and interest (7.5%) provided by the scheme.
Kisan Vikas Patra Calculator
Now you can calculate your Kisan Vikas Patra investments in just a tap. Buddy loan brings to you Kisan Vikas Patra Calculator. As per the KVP scheme, the interest rate is fixed at 7.5% p.a and tenure is fixed at 115 months which is 9 years & 7 months.
Enter the amount you want to invest and the maturity amount will be displayed along with your maturity year.
Also Read: Best Post office Scheme to Double your Money
KVP Maturity Amount Calculation
Now you can manually calculate your KVP Maturity amount using the formula of calculating the maturity amount of a Kisan Vikas Patra (KVP) without an online calculator is:
In this example, we are investing ₹200 per day which amounts to ₹73,000 per year.
Total Initial Investment = ₹ 200/day * 365 Days = ₹73,000
In other words, you will have to initially invest ₹73,000 which will break down to an investment of ₹200 per day.
As per Kisan Vikas Patra scheme, the invested amount will double in 115 months that is 9 years and 7 months.
With this calculation, an initial investment of ₹73,000 will amount to ₹1,46,000/-
Therefore, the maturity amount for your investment of ₹73,000 for 115 months in KVP will amount to ₹1,46,000/-
Also Read: Check how you can grow your savings by 41% in 5 years with SCSS
Benefits of Kisan Vikas Patra
Along with being a government backed trusted program, the Kissan Vikas Patra provides you with other major features & benefits:
- Guaranteed returns: You will recieve the sum guaranteed without being effetted by any market fluctuation.This scheme priorities to encourage them to save for a financially uncertain day.
- Capital Protection: Being a government backed way of investment , it is not subject to market risks. Applicants can receive the investment when the tenure ends.
- Premature withdrawal: The account matures after 115 months and withdrawal is is not allowed unless in the account holder’s demise or court order.
- Loan against KVP certificate: You can use your KVP certificate as collateral to avail secured loans as well. The best part is that the interest rate is comparatively lower for such loans.
Features of Kisan Vikas Patra (KVP) Scheme
The Kisan Vikas Patra Scheme comes with certain conditions in order to grow and secure your wealth with ease. Here are the features that you should know about the Kishan Vikas Patra scheme:
- Fixed Maturity: Invest for a fixed period of 115 months (approximately 9.5 years -7 months) and know exactly when you’ll receive your returns.
- Guaranteed Returns: The Indian government guarantees the interest rate on your investment, offering a safe and predictable way to grow your money.
- Minimum Investment: With a minimum investment of Rs. 1,000 and no upper limit, KVP is accessible to a wide range of investors.
- Wide Availability: Easily purchase KVP certificates from any India Post Office branch or select public sector banks.
Also Read: Crorepati Strategy make 1 Crore with ₹5,000 SIP
Kisan Vikas Patra Eligibility
Now the kisan Vikas Patra scheme comes with certain eligibility criteria. The listicle below provides you an
Here are the eligibility criteria for investing in the Kisan Vikas Patra scheme in point form:
- Applicants must be over the age of 18 and a resident of India.
- Parents or legal guardians can invest on behalf of a minor or person with an unsound mind,
- NRIs (Non-Residents of India) and Hindu Undivided Families (HUFs) cannot invest in the scheme.
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Frequently Asked Questions
Q. How much amount is paid for KVP on maturity?
A. The original invested amount, along with the accrued interest, is paid on the maturity of a KVP.
Q. How do I withdraw from KVP after maturity?
A. In order to withdraw your KVP after maturity, you have to submit the KVP certificate and withdrawal form to the post office. Once done amount will be debited directly to your account
Q. How is interest calculated in KVP?
A. The interest is calculated at a fixed rate set by the government and compounded annually.
Q. Is KVP taxable at maturity?
A. Yes, the maturity amount of a KVP is taxable as per the applicable income tax laws.
Q. Which is better, FD or KVP?
A. The choice depends on your investment goals and risk acceptance along with term conditions aligned with both FD and KVP.
Q. What happens to the KVP after maturity?
A. The investor can withdraw the maturity amount or reinvest it in a new KVP account with a fresh maturity period.
