Q: If someone asks me for a loan and I strongly feel he will not be able to pay me back, can I make intention of zakaat when giving him the money? What happens if he is able and wants to pay back the loan?
A:You can make the intention of zakaat when giving him the money. However when he wants to pay back the money then tell him you had given him the money and cannot take it back. If he persists and does not want to keep the money then give it in sadqa on behalf of him. (Ahsanul fataawa and Fatwaa raheemiya)