Kisan Vikas Patra Withdrawal: How to Withdraw KVP Amount

Kisan Vikas Patra withdrawal: Kisan Vikas Patra is a small low-risk saving certificate scheme initially introduced by India Post in 1988. As the name suggests, it was launched primarily for farmers but now it is open for everyone interested. Read the full article to know complete details about Kisan Vikas Patra withdrawal rules.

Kisan Vikas Patra Withdrawal-

Below we have listed rules for withdrawing principal amount along with interest in KVP scheme:

• It has a KVP maturity period of 124 months and a lock-in period of 2years and 6months. 
• It can be closed before maturity under certain conditions such as upon the death of a KVP holder or death of any one holder in the case of joint KVPs,  or it can be closed, if ordered by court of law. 
• In case of premature withdrawal, the investor must give in writing to the concerned post office along with an identity slip, after which the amount will be given. 
• If premature withdrawal is made after one year and before two and a half years from the date of issuance, the holder will not earn any profit on the amount invested. Investors will also be subject to penalties laid by the post office. 

Kisan Vikas Patra Important Points-

Below we have discussed some important points related to KVP, which one should know before investing. 

• Any Indian resident above the age of 18 can purchase KVP from the nearest post office. 
• One can also purchase a KVP on behalf of a minor or jointly with another adult.
• It does not provide tax benefits. However, TDS is exempt from withdrawal after the maturity period. 
• The minimum amount that can be invested in KVP is as little as 1000rs with no upper limit. 
• Notwithstanding the market fluctuations, the investors are guaranteed to receive double the amount that they have invested upon maturity. 
• The KVP certificate can be used as collateral while applying for secured loans. 

FAQs related KVP Withdrawals