Kisan Vikas Patra (2022) – Interest Rate, Features & All Details

Are you looking for a Kisan Vikas Patra? Well, this blog post is just what you need! We will tell you everything about the scheme and how to apply for it. The Kisan Vikas Patra is an investment option that offers attractive interest rates with easy terms. Farmers or non-farmers can use it. Let’s dive in!

What is Kisan Vikas Patra?

The KVP is an interest-bearing savings instrument launched by the Government of India in 2008 to provide a saving option for small and marginal farmers. The KVP offers an attractive rate of return with liquidity options that are flexible in nature. Initially, Kisan Vikas Patra was only for farmers (as the name depicts), but now, it is available for all.

The Kisan Vikas Patra is a government of India scheme that offers interest rates from 8.5% to 9.5% per annum, depending on the tenure and the amount invested. The funds are locked for 5 years, which means you cannot withdraw your investment before the maturity date. But there are many other aspects of this scheme that you should know about before investing in it!

Kisan Vikas Patra Interest Rate (Double Your Money)

The interest rate for Kisan Vikas Patra changes from time to time. Generally, the government announces the new interest rates every quarter.

The Kisan Vikas Patra interest rate for the last few quarters have been given below:

Q1 FY 2021-22 = 6.9% p.a

Q2 FY 2020-21 = 6.9% p.a

Q4 FY 2019-2020 = 7.6% p.a

Q2 FY 2019-2020 = 7.6%p.a

Q1 FY 2019-2020 = 7.7% p.a

Q4 FY 2018-2019 = 7.7% p.a

The latest interest rate for Kisan Vikas Patra after the budget session of 2021-22 in the month of March 2021 is 6.9%. This is still the highest interest being paid out of all the long-term saving schemes by the government.

If you are an investor in the Kisan Vikas Patra scheme or wish to become one, you should know that this saving scheme has compounded interest facilities. This means that your invested money will not just earn the set per annum interest but will also earn compounded interest every year.

In simple language, Kisan Vikas Patra doubles your money in about 10 years and 4 months. This means that Rs. 5 Lakh invested in KVP in the year 2021 will become Rs. 10 Lakh in the year 2031.

How much can you invest in doubling your money?

The minimum amount that you can invest in KVP is Rs. 1000. However, there is no upper limit. But in case you wish to buy a Kisan Vikas Patra worth more than Rs. 50,000, you need to show your PAN Card.

For an investment of Rs. 10 Lakh and above, you need to show your income proofs, including bank statement and income tax return.

Types of Kisan Vikas Patras

A Kisan Vikas Patra certificate can be of the following types:

Single Holder Type Certificate: This kind of certificate is issued to an adult for self or on behalf of a minor or to a minor.

Joint ‘A’ Type Certificate: As the name suggests, this type of certificate is issued jointly to two adults and is payable to both the holders together or to the survivor.

Joint ‘B’ Type Certificate: Similar to Joint A type, this type of certificate is also issued jointly to two adults but at maturity, it is payable to either of the holders or to the survivor.

Who can Buy KVP?

When the KVP scheme was launched, it was only for farmers. But later on, the government of India opened the scheme for all citizens.

Now, anyone who is an Indian and is above the age of 18 years can invest in Kisan Vikas Patra and double his money in about 10 years. A person can also buy KVP in the name of the minor (below 18 years) but in this case, the guardian’s name is essential.

Features of Kisan Vikas Patra

Guaranteed returns

The Kisan Vikas Patra is an investment scheme that has a fixed interest return per year, which the Government of India guarantees. The minimum investment in KVP scheme is Rs 1000, and there are no upper limits to it.

Double your money in 10 years

The Indian government has set up a program for regular citizens to invest their money in and grow it over 10 years. The Kisan Vikas Patra is a good investment opportunity if you’re looking for some security with your savings.

Compound interest 

Compound interest is calculated by multiplying the principal amount of a deposit plus the accumulated interest on that amount. For example, if you invest Rs. 1000 at 9% compounded annually for 10 years, your total return will be Rs. 2091.

The compound interest formula is A = P(1+i)n.


All investment certificates of Kisan Vikas Patra issued by the Central Government are transferable. These certificates can be transferred from one individual to another with the prior permission of the Reserve Bank of India and in accordance with applicable rules, regulations, and guidelines.

Nomination Facility

KVP scheme has got a nomination facility for all its investment certificates. All investments can be made in the name of a nominee by providing duly filled nomination forms while investing or at any point during the tenure, if already invested.

How to encash Kisan Vikas Patra After Maturity

Once your Kisan Vikas Patra becomes mature, you can easily encash your certificate. To encash your KVP, you’ll have to visit the post office or the bank where you hold your certificate and ask the front office executives for help.

They’ll get your signatures on the maturity documents, and you’ll receive the principal sum as well as the earned interest almost instantly.

You should also be aware that the Kisan Vikas Patra scheme allows premature withdrawal. However, early withdrawals will lead to a lower interest rate and might also incur a penalty.

In case you need money and are thinking of breaking your Kisan Vikas Patra scheme certificate, let us tell you that you can avail of a loan against your KVP. This is similar to a loan against FD. The interest on such loans is comparatively lower as compared to other loans.


I hope that I was able to clear a lot of your doubts in regard to Kisan Vikas Patra. It is a safe and secure investment. If you have some additional funds that are not needed for few years, you may consider investing in Kisan Vikas Patra.

People looking to double their money in 10 years can consider investing in this scheme and oblige their needs simultaneously.

If you have any questions about the KVP, do not hesitate to get back to me. I will be happy to help you out!

Back to top button