Carbon Trust Interest-free Loans Scheme

 

Is your lighting costing a fortune in energy bills? Carbon Trust interest free loans give you the opportunity to both modernise your business and reduce overheads, with your loan repayments comfortably covered by your estimated energy savings.

The unsecured loan that can pay for itself


The Carbon Trust's 0% loans are designed to reduce carbon emissions by enabling businesses to overcome the capital barrier of purchasing energy saving equipment. Loans are unsecured and interest free, with no arrangement fees and a straightforward application process. You can borrow a sum flexible to your business needs of between £3000 to £400,000. Repayments can be repaid over 12 to 48 months and as the scheme is designed for energy savings to cover repayments, the loan will effectively pay for itself.

To be able to qualify for an interest free loan, your organisation must fulfil these criteria:

  • Private sector
  • Trading for at least 12 months
  • Acceptable credit rating 
  • Based in UK
    England, Scotland and Wales – All Small or Medium-sized Enterprises (SME) OR any business that do not qualify for participation in the Carbon Reduction Commitment
    Northern Ireland – any sized enterprise

Not just for SMEs

The EU definition of an SME is an organisation with:

  • Less than 250 full time equivalent employees
  • Less than €50m Turnover (approximately £43m) and/or less than €43m assets (approximately £37m)

The maximum loan limit available to borrow has now been doubled to £400,000. And while loans used to be available only to SMEs, they’re now also available to larger companies that don’t fall under the Carbon Reduction Commitment – this typically equates to those that spend less than £500,000 a year on electricity.

As a guideline, the Carbon Reduction Commitment typically includes businesses with an annual electricity spend greater than £500,000.

 The size of the loan offered and its repayment perio d will be based on your projected CO2 savings, which will be assessed by the Carbon Trust. 

Who are The Carbon Trust?

The Carbon Trust is an independent, not for profit company set up by the Government to work with UK business and the public sector to cut carbon emissions through practical advice and support.