Is zakat obligatory on money saved to pay off an interest-based bank loan, knowing that a full Hijri year has passed on the saved amount, and that the saved amount is less than the loan amount, and a benevolent loan will be taken to complete the repayment of the debt?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Whoever has prepared money to pay off his debt must pay on it if a hawl (a lunar year) passes over it, and if it reaches the (minimum taxable amount) by itself or when combined with other cash or trade goods, provided that he has other non-Zakat-eligible money, exceeding his needs, that can be offset against the debt. Based on the given information, Zakat is not obligatory if the debt is greater than the savings, and a used car is not counted against the debt because it is among the basic necessities.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/156515
Where this answer came from
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- Ftawy
- Original fatwa ID
- 156515
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy