Zakaat Calculation With A Long Term Loan

If a Sahibe-Nisaab’s (the one who possesses the Nisab amount) wealth has lessened during the year, he will still calculate his Zakat on the same date he became a Sahibe-Nisaab. In the enquired case, if your wealth has lessened during the year, you will still calculate your Zakat on 1st Muharram.

In principle, with regard to your specific case, on the 1st Muharram you will total all your Zakatable assets and then deduct the liabilities including the debt instalments of a year (not the entire debt of R2500000), which is 10,000 x 12 = 120,000 in your case.  After deducting this amount, if your Zakaatable assets do not reach the amount of Nisaab on the 1st Muharram, you will not be liable to pay Zakaat.