Interest-free loan to help residents buy a used or new EV in Scotland

From the end of September, Scottish residents will be able to get an interest-free loan to purchase a used or new electric vehicle (EV). 

To date, the Scottish Government’s Low Carbon Transport Loan has provided over £85m in interest-free loans to help people purchase a new EV.

In an announcement made today (September 14), the government has said they will now extend the loan, allowing businesses or individuals to also use the funding to purchase a used electric vehicle. 

The public can receive up to £20,000, interest-free, repayable over five years.

Delivered through Energy Saving Trust, it is hoped that the change in the loan will help to reduce air quality and also help people and businesses who previously could not afford to purchase a new electric vehicle. 

Micheal Matheson, cabinet secretary for transport, infrastructure and connectivity said: ‘Expanding our Low Carbon Transport Loan will make it easier for more people to access the benefits of modern ultra-low emission vehicles.

‘The global shift towards electric vehicles means that prices are coming down year on year, but the price point for new vehicles remains high for many.

‘We want to make it easier for people to switch by providing interest-free finance options for used vehicles.

‘We’ve set a bold ambition to phase out the need for new petrol and diesel cars and vans by 2032.

Globally, it’s clear that the shift to electric vehicles is becoming an inevitability — but no one who requires a vehicle should be left behind from the benefits these modern vehicles can bring, both in terms of running costs and the environmental benefits. This is where we can help.’