Low carbon transport business loan

Driving zero emission vehicles saves money and cuts carbon emissions. Energy Saving Trust can support your business to purchase new electric or hydrogen vehicles.  

If you’re considering an electric or hydrogen vehicle for your business and you operate in Scotland, we offer an interest-free loan for businesses, repayable over six years.  

The low carbon transport business loan is funded by Transport Scotland and can support the purchase of new vehicles with set maximum loan amounts.  

• electric cars are eligible for a maximum loan amount of £30,000 (electric cars must cost £50,000 or less, including VAT)

• electric mopeds and motorcycles are eligible for £10,000
• electric utility vehicles are eligible for £15,000
• electric vans and electric hearses are eligible for £35,000
• hydrogen cars are eligible for £50,000
• other hydrogen vehicles are eligible for £75,000

The loan amount available varies depending on how your business is registered:  

• For limited companies, you can borrow up to £150,000.  
• For sole traders or partnerships, you can borrow up to £75,000 

This means you can make multiple applications (subject to availability of funds), but you cannot owe us more than the total funding available at any time. 

If you would like to your interest in the low carbon transport business loan should funding reopen next year, please fill out the enquiry form below.    

Low carbon transport loan enquiry form 

It’s important that you read the loan eligibility criteria. This document gives full details of what the loan can cover and who is eligible to apply. Please note that our eligibility is subject to change year-on-year.

You’ll need the following information when you apply:  

• your fleet review or vehicle comparison report provided by your sustainable transport coordinator. 
• your quote(s) for the vehicle(s) you plan to purchase with the loan.  
• if you’re applying as a sole trader or partnership, your most recent tax documents (SA103/SA100, SA800). 
• if you’re requesting £75,000 or more of funding, your most recent full year of financial accounts. 
• your confirmation that you won’t purchase the vehicle(s) before receiving a loan offer. If you do, we won’t be able to accept your application. 

Here is a quick outline of your application journey:

• You submit your application
• We aim to provide you with a response within 10 working days. This could be a request for further information, which can delay your next steps
• You have a loan offer and accept this within 14 days
• You submit all claim documents. Any missing information will be queried, which can delay you receiving payment
• We aim to process your claim documents, within 15 working days
• You’ll receive your funding within 3-5 working days