Home » Hanafi Fiqh » Qibla.com » Zakat – accounting for debtors 

Zakat – accounting for debtors 

Answered as per Hanafi Fiqh by Qibla.com

Answered by Shaykh Faraz Rabbani

When calculating zakat, how does one account for money which has been lent to third parties?

In the Name of Allah, Most Gracious, Most Merciful

Walaikum assalam,

Zakat would not be due on money that has been lent out until you get it back into your possession.


Shaykh Abu Usamah: When the money is got back Zakah will have to be paid for all the previous years as well. Hence it is easiest to pay the Zakah on money lent out each year treating that loan as a Zakatable asset and paying the Zakah upon it even though you have not yet received any repayment towards it

E.g. Zayd lent Bakr $ 4000

On 1st Ramadan Zayd’s Zakah Year ends. He will therefore calculate his Zakah thus:

Cash : (say suppose) $ 10 000
Loan to Bakr : $ 4 000

Total Assets $ 14 000

Zakah at the rate of 2.5% will be paid on $14 000 assuming there are no other assets or liabilities.

Abu Usamah

This answer was indexed from Qibla.com, which used to have a repository of Islamic Q&A answered by various scholars. The website is no longer in existence. It has now been transformed into a learning portal with paid Islamic course offering under the brand of Kiflayn.

Read answers with similar topics: