Is Zakat due on a bank loan that has not yet been disbursed, on a sum loaned to brothers whose repayment period has passed and has not been repaid, and on a sum invested with a contractor?

1. The majority of scholars hold that debt exempts hidden wealth, such as cash and similar assets, from zakat. Thus, installments of a bank loan are deducted. If, after deduction, the remaining amount reaches the nisab and a full year has passed, then zakat is obligatory; otherwise, it is not. This applies unless there is a surplus of money beyond basic needs that is not subject to zakat. If there is such a surplus, then allocate that money to offset the debt, and pay zakat on the bank loan after a full year has passed, provided it does not fall below the nisab.

2. Regarding the amount loaned to brothers who are unable to repay it, zakat is due on it for one year after its recovery. Some opinions state that zakat is due for every year, and this is closer to wara' (piety/scrupulousness).

3. Concerning the amount paid to a company with a contractor, the details of its zakat are mentioned in Fatwa No. 102309.