Scotland offering 拢20k interest-free loans to go electric
May 30, 2025 by Siobhan Doyle
Car changing is a big deal
The Scottish Government is offering interest-free loans of up to 拢20,000, making it easier and more affordable to switch to an electric car.
If you鈥檝e been thinking about going electric but worried about the cost, there鈥檚 good news for those living up in Scotland. The Scottish government has just launched a new 拢20m fund to help people make the switch to electric, and it could save you thousands.
The scheme offers interest-free loans of up to 拢20,000, which you can pay back over five years. It鈥檚 designed to help individuals, small businesses, and taxi drivers get behind the wheel of a used electric car without the big upfront price tag.
This funding isn鈥檛 entirely new: it鈥檚 part of a programme that鈥檚 been running since 2011. But it鈥檚 been renewed for 2025, with a strong focus on helping people with lower incomes or those hit hard by the rising cost of living.
鈥淭his will help people access the benefits of modern electric cars at a greater range of price points,鈥 said Transport Secretary, Fiona Hyslop. 鈥淚t means more people can take climate action and be part of the shift to a net zero transport system.鈥
What鈥檚 covered in the scheme?
The support is available through three main loan schemes, which are delivered on behalf of the Scottish Government by the Energy Saving Trust:
- Used EV loan 鈥 for individuals buying a second-hand electric car
- Switched on taxi loan 鈥 for taxi owners looking to upgrade
- Used electric van loan 鈥 for small businesses going electric
All of this comes with no interest, which makes a big difference when you鈥檙e already juggling fuel, insurance, and maintenance costs.
Heather Quin, Senior Programme Manager at Energy Saving Trust, said: 鈥淭hese loans have helped thousands of people and businesses go electric, and we鈥檙e now expanding support to include microbusinesses and sole traders purchasing electric vans. It鈥檚 a practical step toward cutting emissions and improving air quality across the country.鈥
Scotland鈥檚 ahead of the charging game too
Worried about where you鈥檒l charge your new EV? Don鈥檛 be. Scotland now has more public EV charge points per person than anywhere in the UK outside London, and more rapid chargers than any other region. In fact, the government hit its target of 6,000 public chargers two years earlier than planned.
Across the UK, EV charging is ramping up fast. There are now over 79,000 charge points nationwide, up from 28,000 just a few years ago. And thousands more are being added every month.
Why now鈥檚 a good time to make the switch to an electric car
Between fuel prices, low-emission zones, and rising awareness of climate change, electric vehicles are becoming more popular 鈥 and more practical. But the initial price tag can still be a hurdle, especially for families or small business owners.
That鈥檚 where this loan scheme comes in. It takes a big chunk of the financial pressure off and gives you a way to make the move to electric without breaking the bank.
Since the programme began, over 8,700 people in Scotland have used the loans to go electric 鈥 and with this latest round of funding, thousands more could benefit.
If you鈥檙e living in Scotland and want to find out if you鈥檙e eligible and how to apply, visit the website or speak to your local council.
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