Is Zakat obligatory on the principal amount of the loan, which is 170,000 Riyals, or on the total amount due for repayment, which is 200,000 Riyals, if the purpose of the loan is investment?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The on money and trade goods must be paid if their total reaches the (minimum threshold) and a hawl (full lunar year) passes over them, taking into account what the person actually owns and what wealth is gained during the year. As for debts, the majority of scholars permit deducting them from the zakatable wealth, but it is more cautious not to deduct them. Regarding loans from Islamic banks, the increase due to deferment is considered a debt that can be deducted from zakatable wealth if we uphold the view of deducting debts. However, if the increase is interest-based (ribawi), it has a different ruling.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/109599
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- Ftawy
- Original fatwa ID
- 109599
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy