The Scottish Government has extended its Low Carbon Transport Loan funding in a bid to help fleets go electric.

Administered by the Energy Saving Trust’s Scottish arm, the Scottish Government is putting aside public money to offer fleets interest-free loans of up to £135,000 to help procure new ultra-low emission vehicles and telematics devices.

The programme ran last year and was set to expire in March, however the Scottish Government has extended it until at least 2019 while also bumping up the amount of money on offer from £8m to £20m, as well as raising the ceiling of the maximum amount businesses can borrow by £35,000, to £135,000.

To qualify, vehicles must not cost more than £35,000 each and have to be eligible for the UK Government’s Plug-in Car and Van grants, which offers up to £4,500 off the cost of cars and 20% off the cost of vans up to £8,000, respectively.

Renault Zoe - CCT100 Electric Car of the Year 2018

Other incentives, such as the UK-wide Workplace Charging Grant scheme, remains valid alongside the Scottish promotion.

Businesses of all sizes that operate in the country can apply for the loan, although they don’t have to be registered in Scotland to qualify, while repayment terms of up to six years are offered.

Transport Scotland said the loan is designed “to offer a step-change through intensive action” as part of its strategy to rid the country of fossil-fuelled vehicles by 2032.

“We have more than doubled the amount of loan funding we currently offer to individuals and businesses, and have quadrupled the amount of support for public sector fleets so that we can demonstrate leadership and showcase the many benefits of EVs to all of Scotland,” said minister for transport, Humza Yousaf. “With the various funding streams we have on offer I’m proud that Scotland continues to lead the way in supporting and encouraging EVs on to our roads.”