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Is zakah payable on the loan I have given to someone?

Answered according to Hanafi Fiqh by Darulifta-Deoband.com
1) I have given a loan to one of my relative in 2010 which amount he promised to return after one year. But he has still not yet returned the same.
) 2) Do I have to pay zakah on the outstanding amount every year?
(3) Does the person who has taken the loan also pays zakah every year on the amount of loan he has received from me?

بسم الله الرحمن الرحيم

(Fatwa: 1063/1063/M=1434)

(1) If you are sure that you would receive that amount and it is equal to nisab or you are owner of nisab without that amount then in this case the zakah of the amount which you have given as debt shall be wajib on you. You are free whether pay the zakah each year or give the zakah of all the previous years when you receive the amount.
(2) Zakah of this amount is not wajib on the person who has taken the loan.

Allah knows Best!

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

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