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Low Carbon Transport Business Loan

Interest-free loans of up to £120,000 are available to Scottish businesses to help lower their transport and travel costs.  These loans are funded by Transport Scotland (an agency of the Scottish Government) and have a repayment term of up to 6 years. 

The low carbon transport loan aims to support organisations that want to reduce the carbon impact and fuel costs of their transport and travel arrangements with new, more efficient alternatives.

Business loans can be used to meet the cost of a wide range of sustainable measures to lower your business transport carbon footprint including:

  • Pure electric / plug-in hybrid vehicles (up to £35,000 for each new electric vehicle purchased)* 
  • New electric motorcycles or scooters (up to £10,000 for each vehicle purchased)*
  • New electric / plug-in hybrid HGVs (Heavy Good Vehicles) (up to £50,000 for each HGV purchased; applications to be considered on a case by case basis)
  • Vehicle efficiency devices such as telematics systems 
  • Video and tele conferencing facilities

*The new pure electric / plug-in hybrid vehicle or new electric motorcycle / scooter purchased must be eligible for the 'plug-in car, motorcycle and van grants' funded by the Office of Low Emission Vehicles (OLEV)  or listed as a category 2 or 3 car (except plug-in hybrid electric vehicles with a list price of over £60,000 which are not eligible for the loan). Second hand vehicles are not eligible, with the exception of ex-demonstrator vehicles that are less than 12 months old and have less than 6,000 miles on the odometer.

Before applying for a loan you need to call 0800 0931 669 and speak to a sustainable transport coordinator to organise a Sustainable Transport Review (STR). Only when the need for and benefit of the sustainable transport measures have been identified in a STR will you be eligible for a business loan and able to submit your application.
Please note that the latest version of an application form should only be obtained through a Transport Advisor.

Transport Scotland