Advantages of Kisan Vikas Patra & Other Details of KVP
Advantages of Kisan Vikas Patra. Benefits of Kisan Vikas Patra. After Providing “Kisan Vikas Patras – a Discussion” . In This article you can find all advantages or Benefits of Kisan Vikas Patra like Kisan Vikas Patra is Highly Secured, Kisan Vikas Patra is Flexibility in terms of amount etc. Now you can scroll down below and check complete details regarding Advantages of Kisan Vikas Patra.
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Advantages of Kisan Vikas Patra
1. Highly secured :
The main advantage of the many Kisan Vikas Patra is that, being a Government scheme that encourages small investors to do savings, it is completely secured. Small investors who are extremely concern about security for their investment can opt to invest in Kisan Vikas Patra.
2. Flexibility in terms of amount :
One can habituate savings by buying KVP of the lowest value i.e. Rs. 100. KVP is available from Rs. 100 to Rs. 50000 face value. The value that the investor will receive on completion of eight years and seven months is declared on the KVP itself. Thus they can know the maturity amount at the time of inception of their investment itself.
3. Can use as Collateral security :
Many banking companies and financial institutions , Non banking companies accept KVP as collateral securities. So they can be used as a highly liquid property.
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4. High security for acting as Negotiable instruments :
The benefits of Kisan Vikas Patras can be availed by the holder of the KVP since KVP is issued in the name of the holder and cannot be transferred to others without completing the required legal formalities. To get the KVP transferred on to the name of any other person permission of the authority where it was obtained is required.
5. Formalities are nominal :
No complex formalities are there in obtaining Kisan Vikas Patras when compared to other type of financial instruments. And financial literacy is also not required any more.
6.Pre mature withdrawal is available so that in case of any urgency the Patras can be encashed very easily ….so they are highly liquid instruments.