KVP Calculator
Calculate Kisan Vikas Patra maturity amount
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About Kisan Vikas Patra (KVP) Calculator
Kisan Vikas Patra (KVP) is a government savings certificate that doubles your investment in a fixed period (currently ~10 years at 7.5% interest). It's a safe, long-term investment backed by Government of India with guaranteed returns. While originally meant for farmers, now anyone can invest. KVP is ideal for risk-free long-term savings, goal-based investing, and as collateral for loans.
How KVP Works
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Minimum investment: ₹1,000 (no maximum limit)
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Investment doubles in ~9.6 years at 7.5% interest
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Interest rate: Currently 7.5% p.a. (compounded annually)
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Available in denominations: ₹1K, ₹5K, ₹10K, ₹50K
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Can be purchased from post offices and banks
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Transferable and can be used as collateral for loans
Example:
Invest ₹1 lakh in KVP at 7.5% interest - it becomes ₹2 lakhs in 9.6 years. You earn ₹1 lakh as interest - completely safe and guaranteed!
Key Benefits
Investment Doubles: Guaranteed doubling of money
100% Safe: Backed by Government of India
No Maximum Limit: Invest any amount
Loan Collateral: Can be used as collateral for loans
Transferable: Can transfer to another person or location
Flexible Withdrawal: Premature withdrawal after 2.5 years
Frequently Asked Questions
How long does KVP take to mature?
At current 7.5% interest rate, KVP matures in approximately 9.6 years. Maturity period changes with interest rate revisions. The doubling period depends on the interest rate - calculated using compound interest formula.
Can I withdraw KVP before maturity?
Yes, after 2.5 years from date of issue. Premature encashment is allowed with applicable interest. Before 2.5 years, withdrawal is allowed only on death of holder or in case of court order.
Is there any maximum limit for KVP investment?
No maximum limit for KVP investment. Minimum is ₹1,000, and you can invest any amount above that in multiples of ₹100. However, cash investment above ₹20,000 requires PAN.
Is KVP interest tax-free?
No, KVP interest is fully taxable as per your income tax slab. Interest is added to your income yearly (even though you receive it at maturity). KVP doesn't qualify for 80C tax deduction.
How is KVP interest calculated?
KVP uses annual compounding. Formula: Maturity Amount = Investment × 2. The doubling period is calculated using compound interest: Years = log(2) / log(1 + rate/100). Interest accumulates annually and is paid at maturity.
Can I take a loan against KVP?
Yes, KVP certificates can be used as collateral to get loans from banks. Banks typically give loan of 75-90% of certificate value. Interest on such loans depends on bank's lending rates.
Where can I buy KVP certificates?
KVP is available at: All India Post Offices, Authorized Public and Private Sector Banks (SBI, HDFC, ICICI, etc.). You can purchase in physical certificate form.
Can NRIs invest in KVP?
No, NRIs cannot invest in Kisan Vikas Patra. Only resident Indians are eligible to invest. If you become NRI after purchasing KVP, the certificate remains valid till maturity.
What happens if KVP interest rate changes?
Interest rate is fixed at the time of purchase. If rate changes later, it doesn't affect your existing certificates. Your KVP will mature as per original interest rate. New purchases will get new rates.
Can I transfer KVP to another person?
Yes, KVP can be transferred: From one person to another (after 2.5 years), From sole holder to joint holders, From one post office to another. Transfer can be done by submitting Form B at post office.
Is nomination mandatory for KVP?
Nomination is not mandatory but recommended. You can nominate one person who will receive the maturity amount in case of your death. Minor can also be nominated (guardian required).
How is KVP better than Fixed Deposit?
KVP: 7.5% (usually), Govt-backed (safer), 9-10 year lock-in. FD: 6-7.5%, Bank-backed (DICGC ₹5L), flexible tenure. KVP is better for very long-term, risk-free goals. FD is better for flexibility and liquidity.