writer
Atta-ur-Rehman

Does Zakat Apply to a Loan Taken for Maintenance Purposes?

8 min read

zakat-banner

Yes, Zakat applies to a loan taken for maintenance purposes if it is not repayable within the next 12 months.

Here's a clearer breakdown:

  • Loan Repayable Within 12 Months:
    • If the loan is expected to be repaid within the next 12 months, it is not included in your Zakatable wealth.
    • This is because the loan is considered a short-term liability and does not contribute to your overall wealth for Zakat purposes.
  • Loan Not Repayable Within 12 Months:
    • If the loan is not expected to be repaid within the next year, it is included in your Zakatable wealth.
    • In this case, the loan amount is treated as part of your assets and will be subject to Zakat, as it is effectively a form of wealth you can access.

Why is this Important?

  • Zakat is calculated on wealth that is fully owned and can be freely used or transferred.
  • Loans not due for repayment within the year are seen as part of your total wealth, thus making them Zakatable.
  • Loans due within a short time frame are treated as temporary liabilities, and they don't count toward your Zakat calculation.

By considering these points, you can accurately determine whether a loan affects your Zakatable wealth.

And Allah knows best!

writer

WRITTEN BY

Atta-ur-Rehman

Atta-ur-Rehman, a specialist in Fiqh from Fazal-Jamiat-ul-Uloom-ul-Shariah, Jama'at ul-Umar Karachi, is an expert in Islamic jurisprudence. His expertise spans various aspects of Shariah, including Zakat, financial rulings, family laws, and ethical guidance in everyday life. With a deep understanding of Islamic principles, he provides a reliable insights into matters of faith, worship, and personal obligations.