Electric Vehicle Loan

If you're considering your next car or van to be 'electric' then take note!

Just announced is the interest-free Electric Vehicle Loan, funded by Transport Scotland (an agency of the Scottish Government), currently offers drivers in Scotland interest free loans of:

  • up to £35,000 to cover the cost of purchasing a new pure electric / plug-in hybrid vehicle
  • up to £10,000 to cover the cost of purchasing a new electric motorcycle or scooter

This loan has a repayment term of up to six years. The purchased electric vehicle, motorcycle or scooter should be the only plug-in vehicle owned by the applicant and must be eligible for the 'plug-in car or van grants' funded by the Office for 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.

With the exception of an initial deposit, applicants must not have made any other payment towards the purchase of the vehicle before receiving a loan offer under this programme as funding is not provided retrospectively.

For more information about electric cars, to request an application form or to learn more about the full terms and conditions please call your local Home Energy Scotland advice centre or click HERE.

Terms and conditions apply and if you are successful with your application you must keep up with loan repayments. Failure to do so will result in additional steps being taken to recover funds. Full details will be supplied in your loan agreement.

What are the different types of electric car?

An electric car can be powered, in part or full, by a battery that can be plugged directly into mains electricity. The main types of electric car are:

  • Pure-EV
  • Plug-in hybrid EV (PHEV)
  • Extended range EV (E-REV)

Find out more about ELECTRIC CARS.

What support is there for home charge point installation?

Energy Saving Trust can provide up to £300 funding towards the cost of a 32 amp home charge point installation. This is on top of the £500 provided by the Office for Low Emission Vehicles (OLEV).