Do long-term Loans Prevent Zakāt or Not? Mufti Salman Mansurpuri

Businessmen nowadays borrow large sums of money from banks. The amounts are sometimes so large that if they are considered as a hindrance to zakāt, then zakāt will not be obligatory on big capitalists (investors).

Therefore, the cautious opinion regarding business loans is that only the amount of money which is due as installments yearly should be deducted from the original capital, and zakāt should be paid after calculating the total remaining assets.

An example of this is: If the husband still owes the wife her mahr (dowry), this does not prevent zakāt from being wājib. In the same way, this long-term loan will not be a barrier.

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[Derived from: Fatawa Darul Ulum Deoband 6/46, Fatawa Haqqaniyah 3/510, Aaiynah Ramadhan, P.423.]

Kitabul Masail Vol.2 Pg.225

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