Zakat on loan

Question

Assalamualikum Wa rahmatullahi wa barakatuhu,

Sheikh Saheb.

I am an indian working in gulf. I have given loan to siblings and friends. There are two types of people who received loans:

1. I gave loan to siblings for house construction or purchase. I know they are not capable of paying back in the coming few years.

I gave loan to them a few years back as well.

2. Gave loan to friends, some of them can pay back but never bothered to pay back, some of them are not in a position to pay me back.

Teh amount is 40 lakh INR and some of the loans i already written off. this is not included in this bulk amount.

Now do i have to keep paying teh zakat for all this money for coming few years. i also have a problem that i do not have courage (or what ever you say) to ask them to return the loan. so some people ar taking advantage out of it.

Please advise.

I am not asking this question to shy away from zakat. but it hurts to feel taht people take advantage.

Jazakallahu khairan kaseerah

Saad Haque · Accepted Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

In principle, if one gives a loan and has no hope of being paid back, he does not have to give zakat on that money.[1]

If he does receive payment of the debt in the future, he does not have to give zakat for the previous years and will only include it in the upcoming zakat.

If you feel that people will abuse you because of your leniency, you may hire a debt collector to fulfill that task.

And Allah Ta’āla Knows Best

Saad Haque

Student Darul Iftaa
New Jersey, USA

Checked and Approved by,
Mufti Ebrahim Desai.

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