IslamQA.org Logo

How Do I Pay Zakat On Money I Lent Out?

Answered according to Hanafi Fiqh by Seekersguidance.org

Answered by Shaykh Faraz A. Khan

Question: How do I pay zakat on money lent out?

Answer: Assalamu alaikum wa rahmatullah,

I pray this finds you in the best of health and faith.

For money lent out, you may either:

(a) pay zakat on it each year while it is lent out (as you have been doing);

or alternatively:

(b) wait until you receive it back, at which time though you will have to pay zakat for the past years in which it was lent out. If the loan is never repaid, you owe no zakat on it.

[Ibn Nujaym, al-Bahr al-Ra’iq]

You may want to choose the second option considering your financial situation.

And Allah knows best.

wassalam

Faraz

Checked & Approved by Faraz Rabbani

This answer was collected from Seekersguidance.org. It’s an online learning platform overseen by Sheikh Faraz Rabbani. All courses are free. They also have in-person classes in Canada.

Find more answers indexed from: Seekersguidance.org
Read more answers with similar topics: