Payment of Zakaah while having a loan.

Q. I have a question concerning the payment of Zakaat. If you have a loan, does that affect the amount of Zakaat that you have to pay? And if it does how do you calculate it taking the loan into consideration.

A. Yes, paying a loan will affect the amount of Zakaah you have to pay.

The way of calculating it is that when you are ready to pay Zakaah, you should look to see the amount you are about to pay towards the loan (that is due from you at that present moment). Then subtract this amount from your savings, and see how much remains of the savings. If the savings go below the Nisaab, then no Zakaah will be paid. If it is to the amount of the Nisaab or more, then pay 2 1/2% of the total amount of your savings.

And Allah knows best.

Mufti Waseem Khan