Prematurely closer of KVP

[Siddharth]

Hi, I had purchased a kissan vikas patra for the amount of Rs.50,000/- in April' 2007. Now I am in need of money, so I have a query - Can I prematurely close it Now? If yes, what is the procedure for the same?

[Natraj]

Premature encashment is not possible in your case.
Premature encashment of the certificate is permissible at discount, only in case of death of the holder(s), surrendered as a penalty by a pledgee and when ordered by a court of law.

[MTG]

But, I have seen lots of ad in newspaper that you can sell your KVP, NSC etc and they will give you the cash. How they operate?

[rohit]

Premature encashment is not possible in your case.
Premature encashment of the certificate is permissible at discount, only in case of death of the holder(s), surrendered as a penalty by a pledgee and when ordered by a court of law.

Just to add to this - It is possible after the expiry of three years from the date of purchase of certificate.
You can take a loan against the NSC by pledging it to the RBI or a scheduled bank or a co-operative society, a corporation or a government company, a housing finance company approved by the National Housing Bank etc with the permission of the concerned post master.