Loan against Kisan Vikas Patra (KVP)
Loan against Kisan Vikas Patra (KVP)

Get Loan or advance against Kisan Vikas Patra (KVP) – Kisan Vikas Patra was introduced in 1988 with an aim to mobilize small savings from people to boost economy. Kisan Vikas Patra is a saving certificate scheme wherein amount get doubles after maturity period. Maturity period depends on the rate of interest offered by Government of India on KVP from time to time. The scheme proved to be a success but it was shut down after Government appointed committee gave recommendation that KVP can be misused for money laundering.

But in Budget 2014 , new Government re launched the scheme with some modifications. Kisan Vikas Patra can be purchased by any adult (Indian resident) for himself or on behalf of minor, a trust. It can also be purchased by two adults jointly. However, NRIs, HUFs can’t invest in Kisan Vikas Patra. The minimum investment limit is ₹ 1000/- and no maximum limit.

Also Read : How to transfer a Kisan Vikas Patra ?

Loan against Kisan Vikas Patra

Kisan Vikas Patra is not an attractive investment scheme for many peoples as there is no rebate under section 80C for investment made in KVP. Interest accrued on the Kisan Vikas Patra is also taxable.

But here we tell you that you can offer it as collateral against which you can avail loan from banks or other financial institutions.

How to avail Loan against Kisan Vikas Patra

Many public sector banks and financial institutions offer Loan against Kisan Vikas Patra. If you are Kisan Vikas Patra certificate holder, then you enjoy this facility. Here are the details –

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Eligibility for Loan against KVP

The applicant for loan must have KVP in his/her own name. You can not take Loan against someone’s else certificate.

Purpose for Loan against KVP

Loan against Kisan Vikas Patra can be availed for any personal or business use.

Interest Rates / Charges

Interest rates and charges on loan against Kisan Vikas Patra varies from bank to bank. Banks also charges some processing fees which also varies bank to bank.

Loan amount /margin

Margin and Loan amount that you can avail against Kisan Vikas Patra investment depends on each bank’s own rules and policies where you are applying for. Normally, It depends on number of years completed from the day when KVP was issued.


Pledge of KVP and noting lien with post office.

Repayment Period

Loan availed against Kisan Vikas Patra to be liquidated within the tenure of KVP or earlier (by EMI for term loan)


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