Qard hasan is an Islamic contract that pertains to interest-free lending in financial transactions. It serves as a means to provide financial assistance to individuals in need without imposing interest charges during loan repayment. This instrument underscores the principles of cooperation (ta'awun) and benevolence (ihsan) as the underlying wisdom behind the implementation of the qard hasan contract as a benevolence-based agreement. Consequently, banking institutions driven by profit perceive this contract as non-commercial in nature. Therefore, the concept of qard hasan holds potential for application through zakat instruments due to their shared purpose and foundation of aiding those in need. This study aims to examine the implementation of microcredit financing through qard hasan using zakat funds by Lembaga Zakat Negeri Kedah (LZNK) through the Smart Sawah Berskala Besar Asnaf (Smart SBBA) program. Qualitative methods, including library research and field research for data collection, were employed in this study. The research involved the examination of articles, statutes, books, and relevant circulars. From an empirical perspective, field research entailed conducting unstructured interviews with an LZNK officer. The study findings indicate that the Smart SBBA program, organized by LZNK, is an initiative aimed at assisting asnaf groups in augmenting their monthly income by involving them in paddy field cultivation. Throughout the program's duration, participants also received qard hasan loans made possible by zakat funds to support their livelihoods. The program has proven successful in alleviating poverty among the asnaf groups and holds potential for transforming them into zakat payers in the future.