ODOP Margin Money Scheme (Uttar Pradesh)
This profile has been independently compiled from official gazette notifications and verified web domains. Source Authority Link: odopup.in Authority: Department of MSME & Khadi (Uttar Pradesh) • State/Region: Uttar Pradesh • Last Audited: 26 Oct 2026
Quick AI Summary
Provides margin money subsidy of 20-25% on bank loans for setting up or expanding ODOP manufacturing units in Uttar Pradesh, capped at Rs. 6.25 lakh.
Detailed Summary
Scheme Overview
The ODOP Margin Money Scheme is a sub-component of the One District One Product (ODOP) programme implemented by the Government of Uttar Pradesh. It aims to facilitate credit flow to micro and small enterprises engaged in the manufacturing of district-specific ODOP products by reducing the promoter's equity burden through an upfront margin money subsidy.
Subsidy Structure
- General Category: 20% of the project cost sanctioned as term loan.
- Special Category (SC/ST/Women/Minorities/OBC/Physically Handicapped/Ex-Servicemen): 25% of the project cost sanctioned as term loan.
- Maximum Ceiling: The subsidy amount is capped at Rs. 6.25 lakh per unit.
Key Conditions
The margin money is released to the financing bank after the unit commences commercial production. The amount is kept in a separate Term Deposit Receipt (TDR) for a lock-in period of three years, after which it is adjusted against the loan outstanding. The scheme is applicable for new units as well as expansion/diversification of existing units manufacturing notified ODOP products.
Key Benefits & Financial Assistance
| Comparison Criteria | Benefits |
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Eligibility Criteria Profile
| Comparison Criteria | Eligibility |
|---|---|
| Minimum Age Limit | 18 Years or above |
| Physical Disability | Not Restricted (Anyone can apply) |
| Domicile State | All India (Central Scheme) |
Application Process Guide
- Identify the ODOP product for the district and prepare a Detailed Project Report (DPR)
- Approach a Scheduled Commercial Bank, Regional Rural Bank, or Cooperative Bank for term loan sanction
- Register on the official ODOP portal (https://odopup.in) and fill the online application form for Margin Money Scheme
- Upload required documents: DPR, bank sanction letter, caste/category certificate (if applicable), domicile proof, Aadhaar, PAN, and project cost estimates
- Submit application to the District Industries Centre (DIC) / Deputy Commissioner Industries for verification and recommendation
- DIC forwards recommended cases to the Directorate of Industries for final approval and fund release to the financing bank
- Bank disburses term loan; margin money subsidy released as TDR after verification of commercial production
Common FAQs regarding this Yojana
Eligible permanent residents meeting the specified domicile, income, and category criteria can submit an application along with verified credentials.
Key mandatory documents include Aadhaar Card, Residence/Domicile Certificate, Income Certificate, and active Bank Account Passbook.
Benefits are directly credited to the beneficiary's Aadhaar-seeded bank account through the Public Financial Management System (PFMS) / DBT.
Applicants can track status in real-time by logging into the official portal using their Application Reference Number.