Az-Zakah on loaned Wealth

Question :
I loaned a sum of money to a person and a year passed without him repaying the loan. Should I pay Az-Zakah on it or should I wait until he repays it. then pays Az-Zakah for the year when I receive it?

Answer :
When the debt or loan is with a wealthy person who is able to pay it and you are able to get it from him whenever you wish, then you must pay Az-Zakah on it every year, because it is like a trust. It makes no difference whether you left it with him to make things easy on him or because you do not need it. However, if the debt or loan is with one who is in straitened circumstances or who delays payment or who is unable to repay, then the preferred and correct view is that there is no Zakah on this until you receive it. Then, when you receive it, you pay one year's worth of Zakah on it, even if it remained with the debtor for many years. And Allah knows best.
Ash-Shaykh Ibn Jibreen

Tags : qarz, loan, maal, wealth, zakat, az zakah

This question is on 128 page in Fatawa Islamiyah book.

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