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Zakat on a bad loan

Answered as per Hanafi Fiqh by AnswersToFatawa

Respected Mufti

Assalāmu `alaikum Warahmatullāhi Wabarakatuh,

JazakAllah.

Bad loan is a debtor whose not paying after many years

Answer:

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

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

In principle, zakat is not compulsory on a bad loan when there is very little hope or no hope of being repaid the loan[1]. However if a debtor is taking long to repay the loan but there is hope that the loan will be repaid, zakat will be compulsory[2] on the person.

In the case of a bad loan when one lost hope of not being paid, if the loan is repaid then zakat will be payable after having being paid. There won’t be zakat due for the past on that amount.

For example: A person receives a bad loan of R5000 after many years. When his annual zakat date comes he will now add that amount to his total assets and give zakat on the total amount in spite of not paying zakat on the previous years.

And Allah Ta’āla Knows Best

Hafizurrahman Fatehmahomed

Student Darul Iftaa
Netherlands

Checked and Approved by,
Mufti Ebrahim Desai

[1]

الدر المختار وحاشية ابن عابدين (رد المحتار) (2/ 344)

قُلْت: وَقَدَّمْنَا أَوَّلَ الزَّكَاةِ اخْتِلَافَ التَّصْحِيحِ فِيهِ، وَمَالَ الرَّحْمَتِيُّ إلَى هَذَا وَقَالَ بَلْ فِي زَمَانِنَا يُقِرُّ الْمَدْيُونُ بِالدَّيْنِ وَبِمَلَاءَتِهِ وَلَا يَقْدِرُ الدَّائِنُ عَلَى تَخْلِيصِهِ مِنْهُ فَهُوَ بِمَنْزِلَةِ الْعَدَمِ.

جس قرض کی  وصول ہو نے کی امید  ضعیف ہو یا بلکل نہ ہو قبل وصول اس پر زکاّۃ واجب نہ ہو گی، اور جس قدر وصول ہو گا بعد حولان حول آندہ صرف اس قدر پر زکاۃ واحب ہو گی(امداد الفتاوی،ج2،ص63)

جو قرض وصول هو نے کی  امید نہ ہو اس پر زکاۃ قرض نہیں۔(احسن الفتاوي, ج4,ص276)

[2]

جس قرض کے وصول ہو نے کی امید ہو ، اس میں زکاۃ واجب ہو تی ہے(کتاب الفتاوی،ج3،ص324)

The source link of this answer has been removed. It was originally collected from Answerstofatawa.com, which no longer functions.

This answer was collected from AnswersToFatawa.com, which no longer exists. It was established by Moulana Hafizurrahman Fatehmahomed. He graduated from Jamiatul Ilm Wal Huda, Blackburn, UK with a distinction in Alimiyyah degree. He thereafter traveled to Darul Iftaa Mahmudiyyah, Durban, South Africa, to train as a Mufti under Mufti Ebrahim Desai (rah) and Mufti Husain Kadodia.

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