Zakat on gold saved to pay off a loan

My friend has a question about Zakaah. She wants to know if there is Zakaah on gold if it is being kept to pay back a student loan. She has to pay off a loan, so can she buy gold without paying Zakaat on it. This will eventually be used to pay back the loan.

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger. We ask Allaah to exalt his mention as well as that of his family and all his companions.

 

It is an obligation to pay Zakat on the gold which is saved (i.e. not bought for adornment but to resell and benefit from its price) if it reaches the minimum amount liable for Zakat and if a whole lunar year elapses on it. Nonetheless, the scholars differed in opinion with regard to the gold which women wear to beautify themselves, and the majority of them are of the view that there is no Zakat on such gold.

However, if the owner of the saved gold is indebted and has no wealth other than his necessities, like a house and a means of transport, then there is no Zakat on him according to the view of the majority of scholars if the debt reduces the said gold from the minimum amount liable for Zakat (when subtracted from its price). Nevertheless, if he has debts and has wealth on top of his necessities on which Zakat is not required to be paid, like an additional car and the like, then he should use them to pay the Zakat for the gold he possesses, and in this case he is obliged to pay it as he may use the additional wealth which he has in paying the debts.

Allaah Knows best.