Low Carbon Transport Business Loan

The Low Carbon Transport Business Loan offers Scottish businesses up to £150,000 interest-free to help reduce the carbon impact and fuel costs of their transport arrangements through the purchase of new and more efficient vehicles.

Limited companies are eligible for up to £150,000 of loan support, and sole traders or partnerships are eligible for up to £75,000 of loan support.

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 for the purchase of:

• electric motorcycles and mopeds – maximum loan amount of £10,000
• electric utility vehicles – maximum loan amount of £15,000
• electric car(s) – maximum loan amount of £30,000
• hydrogen car(s) – maximum loan amount of £50,000, and must cost £50,000 or less including VAT
• electric van(s) and electric hearses – maximum loan amount of £35,000
• other hydrogen vehicles – maximum loan amount of £75,000
• electric HGV(s) – maximum loan amount of £75,000

If your organisation is seeking funds for new electric or hydrogen cars, the vehicle must be used for high mileage operations, such as making deliveries. 

To be eligible, applicants must meet the following criteria:

• businesses must have been operating for a year
• the applicant must be the business that has ordered or 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 or new hydrogen vehicles are eligible – ex-demonstrator models are eligible under certain criteria

You can the full eligibility criteria on Energy Saving Trust’s website.

There are no application fees and the loans are interest-free.

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

Before you apply for a loan, you'll need to complete the online business transport form on the Energy Saving Trust website. A sustainable transport coordinator will then be in touch.

Visit the Energy Saving Trust's website for more information and to fill out the online business transport form.