Social finance and zakat

Nisab

The minimum amount of wealth above which zakat becomes due; for money it is set by reference to gold or silver.

The nisab is the minimum threshold of wealth that makes zakat obligatory. IFSB-26 describes zakat as due on wealth exceeding a minimum amount held for one lunar year. For money and trade goods the nisab is classically measured by reference to gold or silver, so its value in currency changes with their prices, and zakat institutions publish the reference they use.

Sources

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

Related terms