The Kisan Vikas Patra (KVP) interest rate for the October to December 2026 quarter is set at 7.5%, with the doubling period fixed at 115 months. This means that any KVP certificate purchased during this period will double the invested amount in about 9 years and 7 months, regardless of future changes in interest rates.
- KVP interest rate is 7.5% for the October-December 2026 quarter.
- Doubling period for KVP certificates bought this quarter is 115 months.
- Minimum investment is ₹1,000 with no maximum limit.
- Premature encashment allowed after 2 years and 6 months.
- No tax benefits under Section 80C; interest is fully taxable.
What is the current interest rate and doubling period for KVP?
The Finance Ministry announced on September 30, 2026, that the KVP interest rate will remain at 7.5% for the October-December quarter. This rate has been unchanged for 14 consecutive quarters since April 1, 2023. At this rate, the invested amount doubles in 115 months, which is approximately 9 years and 7 months.
How does the KVP interest rate compare to previous years?
Between 2020 and 2022, the KVP interest rate was 6.9%, with certificates maturing in 124 months. In January 2023, the rate was increased to 7.2%, and since April 2023, it has been 7.5%. These changes have shortened the doubling period from 124 months to 115 months.
What are the investment limits and options for KVP?
KVP certificates can be purchased with a minimum investment of ₹1,000. There is no maximum limit on the amount one can invest. Investors can buy certificates singly, jointly, or on behalf of minors. Additionally, KVP certificates can be pledged as collateral for loans.
Can KVP be encashed before maturity?
Yes, premature encashment of KVP certificates is allowed after a lock-in period of two years and six months. This provides some liquidity to investors who may need access to their funds before the full maturity period.
Are there any tax benefits on KVP investments?
KVP investments do not offer any tax benefits under Section 80C of the Income Tax Act. Moreover, the interest earned on KVP is fully taxable according to the investor’s income tax slab rate.
How is the KVP interest rate determined?
The KVP interest rate is benchmarked against the 10-year government securities (G-sec) yield, following the Shyamala Gopinath Committee formula. This formula includes a standard spread of 25 basis points over the comparable maturity G-sec rate. For the July-September 2026 quarter, the 10-year G-sec averaged around 6.85% to 6.9%, implying a formula rate of about 7.1%. The government currently offers a higher rate of 7.5% to investors.
Does the interest rate change after purchase?
No, the KVP interest rate is locked in at the time of purchase. This means that certificates bought during the October-December 2026 quarter will earn 7.5% interest and double in 115 months, regardless of any future rate changes. Any revisions to the interest rate will only affect new certificates purchased after the notification.
