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Grants and loans

Low Carbon Transport Business Loan

Location notice

Please note that this page contains information and links most relevant for people living in Scotland.

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. The loan is funded by Transport Scotland (an agency of the Scottish Government) and has a repayment term of up to six years.

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

The loan can support the purchase of new:

  • Electric motorcycles and mopeds – maximum loan amount of £10,000.
  • Electric car(s) – maximum loan amount of £30,000.
  • Hydrogen car(s) – maximum loan amount of £50,000.
  • Electric van(s) – maximum loan amount of £35,000.
  • Electric HGV(s) – maximum loan amount of £75,000.
  • Hydrogen vehicles – maximum loan amount of £75,000.

If your organisation is seeking funds for new electric or hydrogen cars, the vehicle must be dedicated to high mileage operations, such as making deliveries. The vehicle you are looking to replace must have an average annual mileage of at least 15,000 miles.

Please note that in order to be eligible for this loan, your business must be operational for a minimum of 12 months.

If your organisation is seeking funds for an electric car, the maximum list price of the vehicle is capped at £50,000.

Finally, if your organisation is seeking funds for a large electric or large hydrogen vehicle, such as an electric bus, electric coach or electric HGV, the loan will cover the cost difference – up to £75,000 – between the electric or hydrogen vehicle and its petrol or diesel equivalent.

From 28 September 2020, the loan was extended to cover used electric vehicles. Find out more about the Used Electric Vehicle Business Loan.

Before applying for a loan, please complete our online form and one of our sustainable transport coordinators will be in touch to arrange a sustainable transport review.

Following the review and identification of appropriate sustainable transport measures, you will be provided with an application form.

Basic eligibility criteria

The following basic eligibility criteria apply to the Low Carbon Transport Business Loan:

  • You are based in Scotland and/or currently and actively operating in Scotland. If your business is registered in England or Wales, but operates in Scotland, you can provide us with a utility bill or similar document showing us the address in Scotland.
  • You have been trading or operational for at least 12 months.
  • You have regular day-to-day access to a charge point located in Scotland; if you do not, you are arranging to have one installed or you are joining ChargePlace Scotland.

When you apply, be sure to have ready:

  • Your financial accounts (assets, liabilities, total income etc.).
  • Quote(s) for the vehicle(s).
  • Dealership contact details.
  • Vehicle Comparison Report or Fleet Review.

In addition to the above you may also need:

  • A letter from your dealership detailing the vehicle’s registration number and odometer reading – if you are seeking support to purchase an ex-demonstration vehicle.
  • Your intended or current vehicle average annual mileage, your intended or current vehicle use – if you are seeking support to purchase a new electric or new hydrogen car.

For further details, please refer to the full eligibility criteria.

Energy Saving Trust is authorised and regulated by the Financial Conduct Authority. This loan is subject to availability and terms and conditions apply.

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Additional resources

Last updated: 8 June 2022