Q: Do I have to pay zakah on money I lent to someone else?
A: It depends on the financial status of the borrower:
Scenario: The borrower is wealthy and capable of repaying
- Yes, you must pay zakah on the lent amount every year.
- This is because the money is expected to be returned.
📌 Example:
If you lent $20,000 and you have $1,000,000 in your account:
- You must pay zakah on $1,020,000
Scenario: The borrower is struggling or refuses to pay (broke or evasive)
This includes:
- Al-Mu‘sir (financially distressed)
- Al-Mumatil (delaying without a valid reason)
- Al-Jahid (denying the debt entirely)
In these cases:
- The money is considered mal maghsoob (usurped or inaccessible wealth).
- No zakah is due until you actually recover the money.
Q: What if I recover the money after years?
A: You only pay one year’s zakah when you receive it—not retroactively.