Low Carbon Transport Business Loan

Support provided by Energy Savings Trust

What does this involve?

The Low Carbon Transport Business Loan offers Scottish businesses up to £120,000 interest-free to help reduce the carbon impact and fuel costs of their transport arrangements through the purchase of new and more efficient vehicles. The loan is funded by Transport Scotland (an agency of the Scottish Government) and has a repayment term of up to 6 years.

The loan can be used toward the purchase of:

• pure electric/range extended vehicles, including cars (up to £28,000 for each) and vans (up to £35,000 for each new electric vehicle purchased)*
• new electric motorcycles or scooters (up to £10,000 for each vehicle purchased)*
• new pure electric/plug-in hybrid heavy goods vehicles (HGVs), minibuses, coaches and buses


*The new pure electric vehicle or new electric motorcycle/scooter purchased must be included on the list of eligible makes and models. For HGVs, e-buses, e-coaches or similar, significant carbon savings need to be identified to be eligible for the loan. This will be assessed on a case-by-case basis.

Am I eligible?

To be eligible, applicants must meet the following criteria:

• businesses must have been operating for a year
• the applicant must be the business which has ordered/will order the vehicle and will become the owner
• the applicant must not have made any payments before receiving a loan offer (with the exception of an initial deposit)
• repayment period is up to 6 years
• only new pure electric vehicles are eligible - ex-demonstrator models are eligible under certain criteria

What does this cost?

There are no application fees. 

Who is this for?

Businesses in Scotland which have been operating for at least a year and which are looking to reduce the carbon impact and costs associated with their transportation.

How long does this take?

Energy Saving Trust aims to process complete applications within 10 working days. A decision cannot be guaranteed before this, and if information is missing it will take longer to process.

The claim process will take a further 10 working days, then allow another 3 to 5 working days for payment to reach the nominated account.

Next steps

Before applying for a loan, please complete the online form on the Energy Saving Trust website. A sustainable transport coordinator will then be in touch to arrange a sustainable transport review.

Support provided by Energy Savings Trust

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