Do I Have to Pay Zakat on Money Given as a Loan to a Family Member?
Hanafi Fiqh
Answered by Mawlana Ilyas Patel
Question
Do I have to pay zakat on money that I loaned to a family member (qard hasana) as I am unsure when they will pay it back?
Answer
In the Name of Allah, the Most Merciful and Compassionate
Yes, you will have to pay Zakat for the money you have given to borrow and loan. This is considered to be in your possession.
Zakat is payable on debts receivables. If someone owes you money, you may pay zakat on that amount every year according to your financial situation or upon receiving the debt. [Ibn ‘Abidin, Radd al-Muhtar]
Check these links as well:
SeekersGuidance Zakat Calculator
Zakat: How to Calculate & Whom to Give – SeekersGuidance
Why not begin your search for knowledge by signing up for a course on SeekersGuidance.
SeekersAcademy (seekersguidance.org)
I pray this helps with your question.
[Mawlana] Ilyas Patel
Checked and Approved by Shaykh Faraz Rabbani
Mawlana Ilyas Patel is a traditionally-trained scholar who has studied within UK, India, Pakistan, Syria, Jordan and Turkey.
He started his early education in UK. He went onto complete hifz of Qur’an in India, then enrolled into an Islamic seminary in UK where he studied the secular and Alimiyyah sciences. He then travelled to Karachi, Pakistan.
He has been an Imam in Rep of Ireland for a number of years. He has taught hifz of the Qur’an, Tajwid, Fiqh and many other Islamic sciences to both children and adults onsite and online extensively in UK and Ireland. He was teaching at a local Islamic seminary for 12 years in the UK where he was a librarian and a teacher of Islamic sciences.
He currently resides in UK with his wife. His personal interest is love of books and gardening.