Smart Financial Planning to Perform Hajj or Umrah

Like many Malaysian Muslims, you dream of performing your Hajj or Umrah and fulfilling your pilgrimage obligation.

However, being able to save up for the pilgrimage can often feel like a distant goal. You might worry that by the time you save up enough money for a Hajj or Umrah package, you may no longer be in the prime of your youth and health to experience the spiritual journey with fewer challenges.

Is there a way to fulfil your Hajj or Umrah obligations sooner? The good news is, yes!

With some smart financial planning, you can perform Hajj or Umrah sooner rather than later. We’ll guide you through some effective financial strategies and options to help you fulfil your pilgrimage duties perhaps as early as 2025.

Hajj & Umrah packages 2025

The costs to perform Hajj or Umrah for Malaysians have typically risen every year due to a combination of factors, such as inflation, exchange rate fluctuation and regulatory changes. Typically, the costs have risen as such:

• Costs for Umrah packages rise by almost 40% every year
• Hajj costs will go up an average of 14% per year
• Hajj costs for T20 can go up more than 100% each year

Let’s take a closer look at how the costs of Hajj and Umrah packages have fluctuated over the past three years.

Hajj package costs 2022-2024

Note: The above data is extracted from Tabung Haji, which manages Hajj for Malaysia.

Umrah package costs 2022-2024

Note: The above data is extracted from Tabung Haji Travel, one of the Hajj and Umrah operators in Malaysia.

In general, we can observe a trend of rising costs for Hajj and Umrah packages. With an average increase of 14% per year, the projected cost of Hajj in 2025 is expected to rise to RM38,295. Meanwhile, if Umrah packages increase by 40% based on trends, the cost of Umrah in 2025 may rise to RM11,200 - RM16,800.

Advanced financial planning to perform Hajj and Umrah faster

With rising yearly costs, it’s more important than ever to start planning your pilgrimage financially so you can perform Hajj and Umrah as soon as possible.

Here are four financial planning strategies you can implement.

1. Savings
   There are various ways you can maximise your savings. Start by identifying areas where you can reduce spending, such as dining out, entertainment, and subscription services. By reallocating these funds to your savings, you can reach your savings goal faster. 
2. Managing debt
   If you have existing debts, consider consolidating or refinancing them to lower profit rates. This can free up more money to allocate toward your pilgrimage savings.
3. Automatic salary deductions
   You can also sign up for automatic salary deduction through Tabung Haji Salary Deduction Contribution. To apply for this, simply visit the nearest Tabung Haji office or register online via THiJARI. This service makes it easier for you to consistently save for Hajj or Umrah via a salary deduction agreement with your employer.
4. Financing
   Getting financing for Hajj or financing for Umrah is one of the fastest ways to have enough funds to finance your pilgrimage. If you are considering this option, saving up as much as possible through one or more of the three strategies mentioned above is recommended. This will minimise the amount of financing you need to take out.

Hajj and Umrah financing

Many Muslims may be concerned if taking financing to perform Hajj or Umrah is permissible. According to Shariah ruling on Hajj and Umrah financing, the answer is yes. However, financing for Hajj or Umrah is only permissible under certain conditions.

According to Portal Rasmi JAKIM, in June 2005, the 69th Muzakarah Jawatankuasa Fatwa Majlis Kebangsaan (National Council Fatwa Committee) stated that it is permissible for a Muslim to perform Hajj or Umrah with financing under the following conditions:

Many Muslims may be concerned if taking financing to perform Hajj or Umrah is permissible. According to Shariah ruling on Hajj and Umrah financing, the answer is yes. However, financing for Hajj or Umrah is only permissible under certain conditions.

According to Portal Rasmi JAKIM, in June 2005, the 69th Muzakarah Jawatankuasa Fatwa Majlis Kebangsaan (National Council Fatwa Committee) stated that it is permissible for a Muslim to perform Hajj or Umrah with financing under the following conditions:

1. They are confident in their ability to pay the financing without it becoming a burden and without affecting their normal day-to-day life and responsibilities.
2. The financing scheme is operated by a body or cooperative that adheres to the principles of sincerity, cooperation, justice, and transparency and is free from riba (interest/usury).

Based on this, it is best to check the payment schedule of various Hajj or Umrah financing options so you can be confident in paying the financing without it becoming a burden.

Budget for your spending money

Finally, remember to factor in how much spending money you need for yourself and any dependents you’re traveling with. To help you stay on track with your Hajj or Umrah budget, it is best to allocate an amount for different spending categories.

Here are some key spending categories you need to include in your financial planning for Hajj and Umrah:

• Food
• Local transportation like taxis, trains, or busses
• Local SIM card or international roaming fees
• Shopping for personal use
• Shopping for gifts
• Unexpected costs

By planning your spending budget in advance, you can finance your Hajj or Umrah with better accuracy, minimising any hidden surprises that could throw your plans off track.

Start financially planning your Hajj or Umrah pilgrimage

By starting your financial planning for Hajj and Umrah now, you are taking an essential step towards fulfilling your pilgrimage. With a clear plan, disciplined savings, the right strategies, and Hajj or Umrah Financing if needed, you can overcome financial barriers and embark on this sacred journey sooner than you might have thought possible.

Ketahui lebih lanjut

maybank.my/hajjumrahfinancing

Tertakluk pada terma dan syarat.

💡 The information provided above is purely for educational purposes.