Monday, April 15, 2024
No menu items!

Zakaah on loaned money

Fawtaa ID: 1376

Question:
Does a person (who loaned the money) have to pay zakat on money that is loaned at 0% interest to someone for their education?

If zakat is to be paid, is it halal to add that amount to the loan to be paid back? Or is that akin to interest

Answer:
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

  1. The creditor is responsible for the zakaah of the money he loans to others. This will be applicable irrespective of the purpose or details of the loan. The debtor on the other end will deduct his debts from his zakaah calculation.
  2. No. The zakaah of the loan may not be added to the loan. That will be riba. Likewise, it is not permissible for the creditor to demand or request the debtor to pay the zakaah.
    And Allaah Ta’aala knows best.
    Mufti Muajul I. Chowdhury
    Darul Iftaa New York
    https://askthemufti.us/

12/10/1444 AH – 06/28/2023 CE | AMG1-3190

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

__________________
Disclaimer

Darul Iftaa New York answers questions on issues pertaining to Shari’ah. These questions and answers are placed for public view on askthemufti.us for educational purposes. The rulings given here are based on the questions posed and should be read in conjunction with the questions. Many answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation. 

Darul Iftaa New York bears no responsibility with regard to its answers being used out of their intended contexts, nor with regard to any loss or damage that may be caused by acting on its answers or not doing so.

References and links to other websites should not be taken as an endorsement of all contents of those websites. 

Answers may not be used as evidence in any court of law without prior written consent of Darul Iftaa New York.