Uttar Pradesh One District One Product (ODOP) Financing Assistance Scheme

Uttar Pradesh One District One Product (ODOP) Financing Assistance Scheme: Benefits, Eligibility and How to Apply

The Uttar Pradesh One District One Product (ODOP) Financing Assistance Scheme, also called the ODOP Margin Money Scheme, helps people start or grow a business based on their district’s signature product, such as a craft, food item or local industry. Banks give the loan, and the government adds margin money on top. The Uttar Pradesh Government started the scheme in September 2018, and the Directorate of Industries runs it through its ODOP Cell and the District Industries Centres (DICs).

Why the Scheme Exists

Small artisans and first-time entrepreneurs often struggle to arrange their own share of money before a bank agrees to lend. This scheme solves that problem by giving financial incentives so that each district’s ODOP product can grow. It covers units in the industry, service and business sectors, as long as they deal in the ODOP product of the applicant’s own district.

How It Works

1. The bank finances the project.
2. The government adds margin money, sent through DBT, and the bank charges no interest on it.
3. The margin money stays in your account as a fixed deposit (TDR).
4. If your unit runs well for two years without loan default, and a joint DIC and bank inspection confirms it, the margin money becomes a grant, which you do not have to repay.

Margin Money Slabs

The maximum assistance is ₹20 lakh.

Own Contribution

• 10% of the project cost for the general category
• 5% for SC, ST, OBC, minority, women and divyang applicants

What the Project Cost Includes

• Capital expenditure, excluding the cost of buying land
• One cycle of working capital
• Rent for a workshop or work shed taken on rent

Other Benefits

• Financing by nationalised banks, Regional Rural Banks and other scheduled banks
• Free entrepreneurship training after loan sanction (already trained beneficiaries may be exempted)
• Hand-holding support from the Deputy Commissioner (Industries) for applicants who face difficulty applying online
• No educational qualification required

Who Is Eligible?

• Aged at least 18 years
• The unit must belong to the ODOP product of the applicant’s own district, in the industry, service or business sector
• Not a defaulter of any nationalised bank, financial institution or government body
• Has not taken benefit under any other self-employment scheme of the Central or UP Government
• One family member only, and only once
• Must submit an affidavit confirming eligibility
• SC, ST, OBC, minority, women and divyang applicants must attach certified certificates from the competent authority
• The application must score at least 50 out of 100 on the credit scorecard to reach the bank

Documents Required

• Identity proof, such as Aadhaar card or Voter ID
• Age proof
• Caste certificate and disability certificate, if applicable
• Project report or project proforma
• Eligibility affidavit, attested by a notary
• Recent passport-size photograph
• Any other document required by the department

How to Apply

The process is entirely online. The DIC does not accept paper forms, and selection interviews have ended. Online applications became compulsory after changes introduced in July 2020.

1. Visit the Directorate of Industries, Uttar Pradesh portal and click “Schemes & Apply”.
2. Select the ODOP Financing Assistance (Margin Money) Scheme and complete the registration form.
3. Open “Registered Applicant Login” and sign in with your User ID, password and captcha.
4. Check the list of mandatory attachments, and keep scanned documents and a photograph ready.
5. Fill in all fields of the e-form and upload the documents.
6. Download the affidavit format, get it notarised, and upload the attested copy.
7. Print the draft, check every entry, and correct any mistakes.
8. Click Final Submit and keep a printout.

If you need help, contact the Deputy Commissioner (Industries) at your DIC or visit the nearest Jan Seva Kendra (CSC).

Checking status: Click “Application Status” on the portal, enter your application number, date of birth and registered mobile number, then click “Check Status”.

What Happens After You Apply

1. The Deputy Commissioner (Industries) checks the application, speaks to you, and returns it for corrections if needed.
2. The DIC scores it on the credit scorecard. Applications with 50 or more marks move ahead.
3. The DIC forwards the application to the bank branch within 7 days of the preliminary evaluation.
4. The branch manager sanctions or rejects the loan within 1 month.
5. After sanction, new beneficiaries complete mandatory entrepreneurship training.
6. The bank releases the first loan instalment within 1 month of training.
7. The competent authority approves the margin money, subject to budget availability, and the DIC transfers it by DBT.
8. After 2 years of successful operation and a joint inspection, the margin money is adjusted as a grant.

Important Conditions

• If the loan is wilfully misused, the bank returns the margin money to the DIC.
• If the unit closes due to a natural disaster or other extraordinary circumstances, the bank may adjust the margin money against your loan.
• Applications are not approved beyond the financial year’s budget limit.
• The Commissioner and Director of Industries, Kanpur, may adjust the number of beneficiaries between districts based on applications received.

Related UP Schemes

• Vishwakarma Shram Samman Yojana: free skill training, modern toolkits and concessional credit for traditional artisans
• Mukhyamantri Yuva Swarojgar Yojana: loans up to ₹25 lakh for manufacturing and ₹10 lakh for service units, with a 25% margin money subsidy

Contact

• Directorate of Industries phone: 0512-2218401, 0512-2234956, 0512-2219166
• Helpline: 155343