Thinking about switching to an electric car but worried about the cost? If you’re in Scotland, there’s some good news – the Scottish Government is now offering interest-free loans of up to £20,000 to help you make the switch. It’s part of a new £20 million push to get more people into electric vehicles, and it could save you thousands.
What’s the deal?
The loan is interest-free and can be paid back over five years. It’s open to individuals, small businesses, and taxi drivers, and it’s designed to make buying a used electric car or van way more affordable – especially if a big upfront payment is holding you back.
This isn’t a brand-new scheme – it’s been around since 2011 – but it’s just been renewed for 2025, with more focus on helping people on lower incomes or those feeling the pinch of the cost of living crisis.
“This will help people access the benefits of modern electric cars at a greater range of price points,” said Transport Secretary, Fiona Hyslop.
“It means more people can take climate action and be part of the shift to a net zero transport system.”
What can you get a loan for?
There are three main options, all handled by the Energy Saving Trust:
- Used EV Loan – for buying a second-hand electric car
- Switched On Taxi Loan – if you’re a taxi driver upgrading your vehicle
- Used Electric Van Loan – for small businesses or sole traders going electric
And remember – there’s no interest, which can make a big difference when you're also dealing with fuel, insurance, or repair costs.
“These loans have helped thousands of people and businesses go electric, and we’re now expanding support to include microbusinesses and sole traders purchasing electric vans. It’s a practical step toward cutting emissions and improving air quality across the country,” said Heather Quin from Energy Saving Trust.
Charging up? Scotland’s ready
Worried about where to charge your EV? Scotland’s already smashing it. There are more public charge points per person than anywhere else in the UK outside London – and more rapid chargers than any other region. The government even hit its 6,000 public charger target two years ahead of schedule.
Nationwide, the UK now has over 79,000 charge points (up from 28,000 just a few years ago), and more are going live every month.
So… is now a good time to go electric?
Short answer: yes.
With fuel prices rising, low-emission zones expanding, and climate awareness growing, EVs are becoming more popular – and way more practical. But we get it – the price can still feel like a hurdle.
That’s why this loan scheme is a game-changer. It cuts out a lot of the financial stress and makes going electric much more doable, even if you’re just starting out or running a small business.
Over 8,700 people in Scotland have already taken advantage of the scheme – and with this new round of funding, thousands more could follow.
Want to check if you’re eligible?
Head over to the Energy Saving Trust website or speak to your local council to see if you can apply.
