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Zakah on loan

Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)


One of our brothers/sisters has asked this question:

Assalam-u-Alaikum Wa Rahmatullahi Wa Barakatuhu,


How are you Burhan bhai

i am working in saudi, i had given some loan to my close relatives as they had asked me for help. i am thinking that i will not ask them about the money, if they will give me back i will take it, if they will not return me, i will ignore that. so far no any information from them that wheither they will return or not.

so now the question is for zakat. i have to consider this money is cash in hand or not. i want the solution about zakat. thanks and khuda hafiz


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Zakah on loan

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person, no grave, no prophet, no imam, no dai, nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad(saws) is His slave-servant and the seal of His Messengers.


One of the conditions when rendering zakah is that the person who pays it must have an intention that he is paying the zakah dues. Thus the scholars in Islam do not hold it permissible that an amount given in loan be converted to zakah when the person is unable to pay it back. It would be considered righteousness and a form of sadaqah if one forgives the loan, but it cannot be converted into zakah.


Allah Says in the Holy Quran Chapter 2 Surah Baqarah verse 280: If the debtor is in a difficulty grant him time till it is easy for him to repay. But if ye remit if by way of sadaqah (charity), that is best for you, if ye only knew.


Your Question: so now the question is for zakat. i have to consider this money is cash in hand or not. i want the solution about zakat.

If the loan is such that one is doubtful whether the debtor will ever pay the loan back or not; then there is no zakah due on it. If and when the debtor actually pays the loan back, then the person should pay the zakah on that amount.


Whatever written of Truth and benefit is only due to Allahs Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.


Your Brother in Islam,





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