✿ Written by: Saudi Fatwa Committee (Fatāwā)
It is not permissible for a person to forgive a loan owed by a poor borrower and then count that amount as part of his Zakāh. This is not valid in Sharīʿah.
Allah ﷻ says:
«وَلَا تَيَمَّمُوا الْخَبِيثَ مِنْهُ تُنفِقُونَ وَلَسْتُم بِآخِذِيهِ إِلَّا أَن تُغْمِضُوا فِيهِ»
(Al-Baqarah: 267)
“And do not aim at the defective from among your wealth to spend [in charity], which you yourselves would not accept except with closed eyes.”
This verse indicates that Zakāh must be paid properly and with sincerity, not through means that benefit the giver alone, such as recovering a bad loan.
Just as one cannot count a personal loan as Zakāh, it is also not permissible to use Zakāh funds to repay the debt of a deceased person in this way.
Reference:
Ibn ʿUthaymīn – Liqāʾ al-Bāb al-Maftūḥ, 17/188
❖ Can an Outstanding Loan Be Counted as Zakāh?
It is not permissible for a person to forgive a loan owed by a poor borrower and then count that amount as part of his Zakāh. This is not valid in Sharīʿah.
❖ Evidence from the Qur'an
Allah ﷻ says:
«وَلَا تَيَمَّمُوا الْخَبِيثَ مِنْهُ تُنفِقُونَ وَلَسْتُم بِآخِذِيهِ إِلَّا أَن تُغْمِضُوا فِيهِ»
(Al-Baqarah: 267)
“And do not aim at the defective from among your wealth to spend [in charity], which you yourselves would not accept except with closed eyes.”
This verse indicates that Zakāh must be paid properly and with sincerity, not through means that benefit the giver alone, such as recovering a bad loan.
❖ Similar Ruling for a Deceased's Debt
Just as one cannot count a personal loan as Zakāh, it is also not permissible to use Zakāh funds to repay the debt of a deceased person in this way.
Reference:
Ibn ʿUthaymīn – Liqāʾ al-Bāb al-Maftūḥ, 17/188
