Can we clear the loan amount with zakat money?
If you mean that you have received some Zakat monies, and you have a loan upon you, then you may utilize the Zakat money to pay out your loan.
If you mean that you wish to use the Zakat money that you need to give away to pay out the recipient’s loan for him, then Zakat will not be paid in this manner. Instead, you will need to hand over the possession of that money to the recipient, and then the recipient may pay out his loan.
And Allah Ta’āla Knows Best
Mufti Faisal al-Mahmudi