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?

Whoever has prepared money to pay off his debt must pay Zakat on it if a hawl (a lunar year) passes over it, and if it reaches the nisab (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.