The funding boost from the Scottish Government means that around £7.8m – double that of previous years – is being made available, interest-free, through the Low Carbon Transport Loan Fund, to help businesses and consumers reduce their transport emissions. Individuals can apply for to £35,000, while businesses can access up to £100,000.

Open for applications now via the Energy Saving Trust, the loan can be repaid over a period of up to six years.

Humza Yousaf, Minister for Transport and the Islands, said: “Our aim is to help support the move to low carbon road transport by getting more electric vehicles on the road, and, where there are not currently electric alternatives, make the existing fleet more efficient.

“This £7.8m investment in interest free loans presents a significant increase on previous years funding and presents a fantastic opportunity for those who have been seriously considering purchasing an electric vehicle.

“Making the switch to electric, enables businesses and individuals to make a direct contribution to local air quality, whilst also improving the health and wellbeing of our communities.

Harry Mayers, Energy Saving Trust’s head of new services, added: “Although running costs for electric cars are lower than petrol or diesel, the initial purchase cost is generally still a bit higher. These loans will help make it possible for more people to choose a better option for the longer term.”

Businesses can use the loan for a range of other sustainable transport projects including installing vehicle telematics, video conferencing and cycling facilities.

Applications are open now and will be accepted up to 31 March 2017, or until all funding has been allocated.

The loan can also be used alongside the existing UK Government Plug-In Car and Van Grant scheme, which offers grants of up to £4,500 for those buying a new electric car and £8,000 for a van (discounted at purchase point).

Commuters and private motorists can apply for the loan through Home Energy Scotland on 0808 808 2282.

Businesses can apply for the loan by contacting their local Energy Saving Trust transport advisor on 0800 0931 669. For more information, visit www.energysavingtrust.org.uk/scotland/fleet.