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

Scheme Introduction: A Brief Overview

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 special product. Every district in Uttar Pradesh has one product identified under the One District One Product (ODOP) programme, such as a craft, food item, or local industry. If you want to set up a unit for that product, this scheme gives you financial support along with a bank loan. 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.

Most small artisans and first-time entrepreneurs struggle to arrange their share of money before a bank agrees to give a loan. The state launched the ODOP Margin Money Scheme to solve exactly that problem. Its objective is to support artisans, workers and entrepreneurs with financial incentives so that each district's ODOP product can grow fully. The scheme covers units in the industry, service, and business sectors, as long as they deal in the ODOP product of the applicant's own district.

The bank gives the loan, and the government adds margin money on top of it. For projects up to ₹25 lakh, you get 25% of the project cost, up to ₹6.25 lakh. For bigger projects, the support goes up to a maximum of ₹20 lakh. The government sends this money straight to your bank account through DBT, and the bank charges no interest on it. If your unit runs well for two years without any loan default, the margin money turns into a grant, which means you do not have to repay it. You only need to put in 10% of the project cost yourself, or just 5% if you belong to the SC, ST, OBC, minority, women, or divyang category.

Under, the One District One Product Financing Assistance Scheme, the whole process now runs online. In July 2020, the government introduced certain necessary changes in the scheme to make online applications compulsory, so the District Industries Centre no longer accepts paper forms. Selection interviews have also ended. Instead, the department checks each application on a simple 100-mark scorecard, and applications that score 50 marks or more go to the bank for loan approval. After the bank sanctions the loan, new beneficiaries attend a short entrepreneurship training before they receive the money.

To further promote entrepreneurship and self-employment across the state, the Government of Uttar Pradesh is also implementing the Vishwakarma Shram Samman Yojana and the Mukhyamantri Yuva Swarojgar Yojana. The Vishwakarma Shram Samman Yojana provides traditional artisans with free skill training, modern toolkits, and access to concessional credit. While the Mukhyamantri Yuva Swarojgar Yojana offers loans up to ₹25 lakh for manufacturing and ₹10 lakh for service units, with a 25% margin money subsidy. You can check the complete details of both schemes here.

Scheme Benefits

The One District One Product Financing Assistance Scheme links the margin money amount to the total project cost of the unit, as shown below.

Other Benefits

Under the Uttar Pradesh ODOP Margin Money Scheme, beneficiaries are entitled to the following key benefits:

• Bank Loan: Nationalised banks, Regional Rural Banks and other scheduled banks finance the project.
• Grant Conversion: Margin money becomes a grant after 2 years of successful operation with no default.
• No Interest on Margin Money: The bank charges no interest on the margin money portion of the project cost.
• DBT Payment: The DIC releases margin money directly into the beneficiary's bank account through DBT.
• Low Own Contribution: Special category beneficiaries contribute only 5% of the project cost.
• Free Training: Beneficiaries receive entrepreneurship training after loan sanction; already trained beneficiaries may get an exemption.
• Hand-holding Support: The Deputy Commissioner (Industries) helps applicants who face difficulty in applying online.

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.
• Land purchase cost does not form part of the project cost.

Eligibility Requirements

To become eligible for financial support under the One District One Product Financing Assistance Scheme, applicants are required to fulfil the following essential conditions.

• The applicant must be at least 18 years old.
• The scheme does not require any educational qualification.
• The unit must belong to the ODOP product identified for the applicant's district, in the industry, service or business sector.
• The applicant or unit must not be a defaulter of any nationalised bank, financial institution or government institution.
• The applicant must not have taken benefit of any other self-employment scheme of the Government of India or the Uttar Pradesh Government.
• Only one family member can receive the benefit, and only once.
• The applicant must submit an affidavit confirming that he or she meets all eligibility conditions.
• SC, ST, OBC, minority, women, and divyang applicants must attach certified copies of certificates issued by the competent authority.
• The application must score at least 50 out of 100 marks on the credit scorecard to reach the bank.

Required Documents

Applicants should keep scanned copies of the following officially listed documents ready before filling the online form for the ODOP Financing Assistance Scheme.

• Identity proof, such as Aadhaar card or Voter ID card
• Age proof
• Caste certificate (if applicable)
• Disability certificate (if applicable)
• Project report/project proforma
• Affidavit on eligibility, attested by a notary
• Recent passport-size photograph
• Any other document required by the department

Steps to Apply

The application process for the UP ODOP Margin Money Scheme is completely online, and applicants must apply through the Directorate of Industries portal; the DIC does not accept offline application forms. You can understand the complete application process by following the steps below.

Online Registration and Login

• Visit the official portal of the Directorate of Industries, Uttar Pradesh.
• On the home page, click on “Schemes & Apply” and select the ODOP Financing Assistance (Margin Money) Scheme.
• Fill in the required details in the registration form available below the scheme information and complete your registration.
• After Registration, open Registered Applicant Login, enter the User ID, password, captcha, and click on Login.

Fill the Online Application

• Check the list of mandatory attachments under "Important instructions for online beneficiary oriented schemes" by clicking on the ODOP scheme.
• Keep scanned copies of all documents and a recent photograph ready.
• Fill in all fields of the e-form.
• Upload all the documents required for the scheme.
• Download the affidavit format, get it attested by a notary, and upload the attested copy.
• Take a printout of the draft copy and check every entry carefully; correct any mistake through the relevant option.
• Make sure every uploaded document appears correct and clearly readable on the portal.
• Click Final Submit under the application copy option.
• Take a printout of the submitted application for your records.

Scrutiny, Bank Processing and Disbursement

• The Deputy Commissioner (Industries) checks the application, talks to the applicant, and sends the form back for corrections if needed.
• The DIC evaluates the application on the credit scorecard; applications with 50 or more marks move ahead.
• The DIC forwards the application online to the concerned bank branch through the e-portal within 7 days of the preliminary evaluation.
• The branch manager decides on loan sanction or rejection within 1 month of receiving the application and updates the decision on the e-portal.
• After loan sanction, new beneficiaries complete mandatory entrepreneurship training at a reputed institution; already trained beneficiaries may get an exemption.
• The bank releases the first loan instalment within 1 month of training and updates the details on the e-portal.
• After loan sanction, the competent authority approves the margin money, subject to budget availability and fulfilment of all scheme criteria, and the DIC transfers it to the beneficiary's account through DBT.
• After 2 years of successful operation and a joint inspection by the DIC and bank officers, the government adjusts the margin money as a grant.

Help with Online Application

Applicants facing difficulty in applying online may contact the Deputy Commissioner (Industries) at their District Industries and Enterprise Promotion Centre (DIC) or visit their nearest Jan Seva Kendra (CSC) for hand-holding support in completing and submitting the online application for UP ODOP Margin Money Scheme.

How to Check Application Status

• Visit the official portal
• Click on the "Application Status" option.
• Enter your application number, DOB, and registered mobile number.
• Click on Check Status to view the latest status.

Important Conditions

Beneficiaries should keep the following conditions in mind after receiving the loan and margin money.

• The margin money stays in your account as a fixed deposit (TDR) until it turns into a grant.
• In case of wilful misuse of the loan, 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 the beneficiary's loan.
• The government does not approve applications beyond the budget limit of the financial year.
• The Commissioner and Director of Industries, Kanpur may adjust the number of beneficiaries between districts based on applications received.

Relevant Links

• UP ODOP Margin Money Scheme Registration
• ODOP Margin Money Scheme Login
• Directorate of Industries, Uttar Pradesh Scheme Details
• One District One Product Financing Assistance Scheme Notification
• One District One Product Financing Assistance Scheme Details
• Guidelines of UP One District One Product Financing Assistance Scheme
• Revised Guidelines of ODOP Margin Money Scheme 

Contact Information

• Directorate of Industries, Uttar Pradesh Phone Numbers:
  • 0512-2218401
  • 0512-2234956
  • 0512-2219166
• Directorate of Industries Helpline Number: 155343