Zakāt on Long Term Loans

7th October 2019

السلام عليكم و رحمة الله و بركاته

Question: I understand that loans fall under one’s personal essentials deductible for Zakāt. Is there a difference in the rulings between a short-term or long-term loan or are they the same?

 

الجواب حامداً و مصلياً

In the name of Allāh, the Most Gracious, the Most Merciful

 

Answer

In reference to your particular query, the general principle is that all types of loans personal or commercial are deductible from one’s personal Zakāt assets due to two reasons; firstly, because this falls within one’s essentials and secondly, that the loaned money does not belong to the borrower. So technically, the money belongs to the creditor who is responsible for paying Zakāt on it [if he is a Muslim that is] since it is their money. He has the legitimate right to demand or use certain measures to retrieve his money whenever he wishes.[1]

The Hanafi jurists discuss deferred debt citing the example of mahr whether it prevents Zakāt or not. To explain, all immediate mahr – paid instantly or within 12 months[2] are deductible – excluded from Zakāt – unanimously. Jurists have differed whether deferred mahr­ – paid after 12 months – is deducted from Zakāt or not. The first opinion is that it too like immediate debt is deductible i.e. there is no Zakāt on it. The second opinion is that it is not deductible meaning that he must include it amongst his Zakatable assets and pay Zakāt on it if he has not paid his wife her mahr yet. Some have conditioned that if the husband has no intention of giving it due to the bride not demanding it customarily then it is not deductible but if he has the intention of giving it then it is deductible.[3] Ibn Ābidīn Shāmi rahimahullah, a renowned Hanafi jurist states that evidence exists on both sides but the correct view is that it is not deductible from Zakāt [regardless if he intends to pay the mahr or not].[4]

Modern methods of transactions have considerably evolved since the ancient past. More people are borrowing larger sums of money for personal needs and pay back the borrowed sum in instalments over a lengthy period of time. Contemporary scholars such as Maulana Khalid Saifullah Rahmani view that all long-term loans are non-deductible for Zakāt with the application of the deferred mahr rule except the amount paid within the 12 months.[5] This is based on the principle of preferring that which benefits the poor.

 

[Allãh Knows Best]

 

Written by (Mufti) Abdul Waheed

Answer Attested by Shaykh Mufti Saiful Islam

JKN Fatawa Department

 

 

[1] Al-Dehlawi al-Hindi, Fatāwa Tatarkhaniyyah, Kitāb Zakāt, Fasl Ashir fi bayan ma yama’u wujub Zakāt, vol 1, p. 287

[2] The reason for stipulating 12 months is due to that being one’s annual Zakāt calculation.

[3] Fatawa Hindiyyah, Kitāb al-Zakāt, vol 1, p. 173

وَكَذَلِكَ الْمَهْرُ يَمْنَعَ مُؤَجَّلًا كَانَ أَوْ مُعَجَّلًا؛ لِأَنَّهُ مُطَالَبٌ بِهِ كَذَا فِي مُحِيطِ السَّرَخْسِيِّ. وَهُوَ الصَّحِيحُ عَلَى ظَاهِرِ الْمَذْهَبِ وَذَكَرَ الْبَزْدَوِيُّ فِي شَرْحِ الْجَامِعِ الْكَبِيرِ قَالَ مَشَايِخُنَا – رَحِمَهُمْ اللَّهُ تَعَالَى – فِي رَجُلٍ عَلَيْهِ مَهْرٌ مُؤَجَّلٌ لِامْرَأَتِهِ، وَهُوَ لَا يُرِيدُ أَدَاءَهُ: لَا يُجْعَلُ مَانِعًا مِنْ الزَّكَاةِ لِعَدَمِ الْمُطَالَبَةِ فِي الْعَادَةِ، وَأَنَّهُ حَسَنٌ أَيْضًا هَكَذَا فِي جَوَاهِرِ الْفَتَاوَى.

 

Kasān, Badā’i Sanāi, Kitāb al-Zakāt, vol 2, p. 6

وَعَلَى هَذَا يُخْرَجُ مَهْرُ الْمَرْأَةِ فَإِنَّهُ يَمْنَعُ وُجُوبَ الزَّكَاةِ عِنْدَنَا مُعَجَّلًا كَانَ أَوْ مُؤَجَّلًا؛ لِأَنَّهَا إذَا طَالَبَتْهُ يُؤَاخَذُ بِهِ، وَقَالَ بَعْضُ مَشَايِخِنَا: إنَّ الْمُؤَجَّلَ لَا يَمْنَعُ؛ لِأَنَّهُ غَيْرُ مُطَالَبٍ بِهِ عَادَةً، فَأَمَّا الْمُعَجَّلُ فَيُطَالَبُ بِهِ عَادَةً فَيَمْنَعُ، وَقَالَ بَعْضُهُمْ: إنْ كَانَ الزَّوْجُ عَلَى عَزْمٍ مِنْ قَضَائِهِ يَمْنَعُ، وَإِنْ لَمْ يَكُنْ عَلَى عَزْمِ الْقَضَاءِ لَا يَمْنَعُ؛ لِأَنَّهُ لَا يَعُدُّهُ دَيْنًا وَإِنَّمَا يُؤَاخَذُ الْمَرْءُ بِمَا عِنْدَهُ فِي الْأَحْكَامِ.

 

[4] Durrul Mukhtār wa hashiyah Ibn Ābideen Shāmi, Kitāb al-Zakāt, vol 2, p. 261

(فَارِغٍ عَنْ دَيْنٍ لَهُ مُطَالِبٌ مِنْ جِهَةِ الْعِبَادِ) سَوَاءٌ كَانَ لِلَّهِ كَزَكَاةٍ وَخَرَاجٍ أَوْ لِلْعَبْدِ، وَلَوْ كَفَالَةً أَوْ مُؤَجَّلًا، وَلَوْ صَدَاقَ زَوْجَتِهِ الْمُؤَجَّلَ لِلْفِرَاقِ

(قَوْلُهُ أَوْ مُؤَجَّلًا إلَخْ) عَزَاهُ فِي الْمِعْرَاجِ إلَى شَرْحِ الطَّحَاوِيِّ، وَقَالَ: وَعَنْ أَبِي حَنِيفَةَ لَا يُمْنَعُ. وَقَالَ الصَّدْرُ الشَّهِيدُ: لَا رِوَايَةَ فِيهِ، وَلِكُلٍّ مِنْ الْمَنْعِ وَعَدَمِهِ وَجْهٌ. زَادَ الْقُهُسْتَانِيُّ عَنْ الْجَوَاهِرِ: وَالصَّحِيحُ أَنَّهُ غَيْرُ مَانِعٍ

[5] Maulana Khalid Saifullah Rahmani, Jadeed fiqhi masail, vol 1, p. 213