{"id":38721,"date":"2025-09-02T13:02:11","date_gmt":"2025-09-02T13:02:11","guid":{"rendered":"https:\/\/daruliftabirmingham.co.uk\/home\/?p=38721"},"modified":"2025-09-02T13:05:15","modified_gmt":"2025-09-02T13:05:15","slug":"ruling-on-zakah-for-loaned-and-borrowed-money","status":"publish","type":"post","link":"https:\/\/daruliftabirmingham.co.uk\/home\/ruling-on-zakah-for-loaned-and-borrowed-money\/","title":{"rendered":"Ruling On Zakah For Loaned And Borrowed Money"},"content":{"rendered":"

Fatwa ID: 08314<\/strong><\/span><\/p>\n

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Written by Alimah Aisha Qureshi<\/strong><\/span><\/p>\n

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Question:<\/strong><\/span><\/p>\n

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A gives B a $3000 loan payable over 3 years, $1000 a year.<\/span><\/p>\n

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B has the $3000 in his account on his Zakat date.<\/span><\/p>\n

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Using the 1-year rule, B deducts $1000 as liability and pays zakat on $2000.<\/span><\/p>\n

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A pays Zakat on the full $3000 because it is Dayn Qawi.<\/span><\/p>\n

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This means the Zakat is being paid twice on the $2000. Both A and B are paying Zakat on it.<\/span><\/p>\n

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Is that correct?<\/span><\/p>\n

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In the name of Allah, the Most Gracious, the Most Merciful<\/strong><\/span><\/p>\n

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Answer:<\/strong><\/span><\/p>\n

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Zakat, is an obligatory form of charity in Islam, is required on wealth that reaches a certain threshold and has been held for a full lunar year. When it comes to loans, both the debtor (borrower) and the creditor (lender) have specific zakat obligations. In a situation where a loan is owed and there is an overlap between the wealth of the borrower and the receivable amount of the lender, it can lead to double zakat payment on the same money.<\/span><\/p>\n

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Zakat on the Borrower’s Wealth:\u00a0B, the borrower, has a loan of\u00a0$3000\u00a0payable over\u00a03 years, with\u00a0$1000\u00a0to be paid each year. On the zakat date, B has the full\u00a0$3000\u00a0in his account. According to the\u00a01-year rule\u00a0in zakat calculations, B deducts the amount of the loan that is due within the year (in this case,\u00a0$1000) as a liability, leaving\u00a0$2000\u00a0as his wealth on which zakat is due. Therefore, B will pay zakat only on the\u00a0$2000\u00a0that remains after the liability deduction.<\/span><\/p>\n

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Zakat on the Lender\u2019s Wealth: A, the lender, lent $3000 to B and is expecting repayment over the course of three years. Since the loan is considered a Dayn Qawi (a strong, recoverable debt), A is obligated to pay zakat on the full $3000, as this amount is still part of A\u2019s wealth until it is repaid by B. Even though B holds the money in his account, A still treats it as part of his assets and, therefore, is required to pay zakat on the entire $3000.<\/span><\/p>\n

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The Overlap in Zakat Payment:\u00a0The overlap occurs because\u00a0$2000\u00a0is present in both B’s account and A\u2019s receivable loan balance. B pays zakat on the\u00a0$2000\u00a0he holds, while A pays zakat on the same amount as part of the loan owed to him. This results in both parties paying zakat on the\u00a0same $2000, leading to\u00a0double zakat payment\u00a0on this portion of wealth.<\/span><\/p>\n

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References:<\/strong><\/span><\/p>\n

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(\u0648)\u00a0\u0627\u0639\u0644\u0645 \u0623\u0646 \u0627\u0644\u062f\u064a\u0648\u0646 \u0639\u0646\u062f \u0627\u0644\u0625\u0645\u0627\u0645 \u062b\u0644\u0627\u062b\u0629: \u0642\u0648\u064a\u060c \u0648\u0645\u062a\u0648\u0633\u0637\u060c \u0648\u0636\u0639\u064a\u0641\u061b\u00a0(\u0641\u062a\u062c\u0628)\u00a0\u0632\u0643\u0627\u062a\u0647\u0627 \u0625\u0630\u0627 \u062a\u0645 \u0646\u0635\u0627\u0628\u0627 \u0648\u062d\u0627\u0644 \u0627\u0644\u062d\u0648\u0644\u060c \u0644\u0643\u0646 \u0644\u0627 \u0641\u0648\u0631\u0627 \u0628\u0644\u00a0(\u0639\u0646\u062f \u0642\u0628\u0636 \u0623\u0631\u0628\u0639\u064a\u0646 \u062f\u0631\u0647\u0645\u0627 \u0645\u0646 \u0627\u0644\u062f\u064a\u0646)\u00a0\u0627\u0644\u0642\u0648\u064a \u0643\u0642\u0631\u0636\u00a0(\u0648\u0628\u062f\u0644 \u0645\u0627\u0644 \u062a\u062c\u0627\u0631\u0629)\u00a0\u0641\u0643\u0644\u0645\u0627 \u0642\u0628\u0636 \u0623\u0631\u0628\u0639\u064a\u0646 \u062f\u0631\u0647\u0645\u0627 \u064a\u0644\u0632\u0645\u0647 \u062f\u0631\u0647\u0645\u00a0(<\/span><\/p>\n

Radd al Muhtar Vol 2 Pg 305 Maktaba Shamila<\/span><\/p>\n

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Only Allah knows best.<\/span><\/p>\n

Written by Alimah Aisha Qureshi<\/span><\/p>\n

Checked and approved by Mufti Mohammed Tosir Miah<\/span><\/p>\n

Darul Ifta Birmingham<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Fatwa ID: 08314       Written by Alimah Aisha Qureshi       Question:   A gives B a $3000 loan payable over 3…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[19],"tags":[],"_links":{"self":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/38721"}],"collection":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/comments?post=38721"}],"version-history":[{"count":3,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/38721\/revisions"}],"predecessor-version":[{"id":38724,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/38721\/revisions\/38724"}],"wp:attachment":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/media?parent=38721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/categories?post=38721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/tags?post=38721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}