Our Kisan Vikas Patra (KVP) Calculator helps you determine the maturity value of your KVP investment. KVP is a government-backed small savings certificate scheme that offers guaranteed returns with the security of government backing.

What is Kisan Vikas Patra (KVP)?

Kisan Vikas Patra is a fixed-rate savings certificate scheme launched by the Government of India to promote long-term savings. It is available at post offices and select public sector banks across India.

Key Features:

• Government Backing: Fully backed by the Government of India
• Fixed Returns: Currently offers 7.5% annual interest rate
• Investment Doubling: Your investment doubles in 115 months (about 9 years 7 months)
• Minimum Investment: ₹1,000 in multiples of ₹100
• No Maximum Limit: No upper cap on investment amount

How KVP Calculation Works

The KVP scheme is designed with a simple principle: your investment doubles at maturity. The current parameters are:

• Interest Rate: 7.5% per annum (compounded annually)
• Tenure: 115 months (approximately 9 years 7 months)
• Maturity Value: Exactly double the investment amount

Mathematical Formula: For KVP, the compound interest formula applies:

$A = P \left(1 + \frac{r}{100}\right)^t$

Where:

• A = Maturity amount
• P = Principal investment
• r = Annual interest rate (7.5%)
• t = Time period (9.58 years)

However, the scheme is specifically designed so that your investment doubles, making the calculation straightforward:

$\text{Maturity Amount} = \text{Investment Amount} \times 2$

Using Our KVP Calculator

1. Enter Investment Amount: Input your desired one-time investment (minimum ₹1,000)
2. View Fixed Parameters: The calculator displays the current scheme parameters:
   • Interest rate: 7.5% p.a.
   • Tenure: 115 months
   • Maturity benefit: 2x investment
3. Get Results: Instantly see your maturity amount and total interest earned

Investment Guidelines

Eligibility:

• Available to Indian residents only
• Not available to NRIs or Hindu Undivided Families (HUFs)
• Can be purchased by adults for themselves, minors, or jointly

Investment Details:

• Minimum investment: ₹1,000 (in multiples of ₹100)
• No maximum investment limit
• Certificates are transferable
• Nomination facility available

Withdrawal Rules:

• Premature withdrawal allowed after 2.5 years under specific conditions
• Full maturity in 115 months for maximum benefit

Tax Implications

Important Tax Considerations:

• No Section 80C Benefits: KVP investments do not qualify for tax deduction under Section 80C
• Taxable Interest: Interest earned is fully taxable as per your income tax slab
• Annual Taxation: You can choose to pay tax annually on accrued interest or at maturity
• No TDS: No tax deduction at source on maturity amount

Advantages of KVP Investment

1. Government Security: 100% government backing ensures capital safety
2. Guaranteed Returns: Fixed 7.5% return with no market risk
3. Predictable Growth: Investment doubles in a fixed tenure
4. Easy Access: Available at post offices and banks nationwide
5. Transferable: Certificates can be transferred or gifted
6. No Upper Limit: Invest any amount above the minimum
7. Nomination Facility: Ensures smooth transfer to nominees

Disadvantages to Consider

1. No Tax Benefits: Unlike PPF or ELSS, no Section 80C deduction
2. Taxable Returns: Interest is fully taxable
3. Long Lock-in: Minimum 2.5 years for premature withdrawal
4. Fixed Rate: Cannot benefit from potential higher market returns
5. Inflation Risk: Fixed returns may not always beat inflation

Our KVP calculator provides instant, accurate calculations to help you plan your government-backed fixed income investments effectively.