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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 £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 six years.

The loan can be used towards the purchase of:

  • Pure electric/range extended vehicles, including cars (up to £28,000) 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 heavy goods vehicles (HGVs), minibuses, coaches and buses.

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

There is no per-vehicle cap on loans to purchase any vehicle that is not a car, a van or a motorcycle/scooter. Such vehicles include new pure electric HGVs, minibuses, coaches and buses. An overall cap of £120,000 applies to the purchase of these types of vehicles.

*The new pure electric vehicle or new electric motorcycle / scooter purchased must be included on the Office for Zero Emission Vehicles (OZEV) plug-in grant list. For HGVs, ebuses, ecoaches or similar, significant carbon savings need to be identified, in order to be eligible for the loan. This will be assessed on case-by-case basis.

From 28 September 2020, the loan was extended to cover used electric vehicles. See more information about the Used Electric Vehicle 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.

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: 11 January 2022