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The question

Is zakat obligatory on the loan amount repaid to a brother in installments, and how is it calculated?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

You both must repent to Allah if the bank from which the loan was taken was usurious. The money became your possession as soon as you received it from your brother. You are required to add this money to what you own in cash and trade goods and pay on it if it reaches the . It is preferable to pay Zakat on all money without deducting debt, which is the view of Shafi'i and the choice of Ibn Baz and Ibn Uthaymeen. The majority view is to deduct the debt first and then pay Zakat on the remainder. Malik's is that if someone has a possession for personal use that they can dispense with, they should use it to offset the debt and not deduct it; otherwise, they should deduct the debt and pay Zakat on the remainder. If Zakat became obligatory upon you due to owning the nisab free from debt, then you must pay Zakat for the years for which it has not been paid. The amount of Zakat is a quarter of a tenth (2.5%), calculated by dividing the money by forty.

Summarized from the full answer at Ftawy · imported

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Source platform
Ftawy
Original fatwa ID
96776
Imported
Translation status
Source text, unreviewed
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