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Zakaah on loaned money

Fawtaa ID: 1376

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

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

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

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين


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