How is the zakat paid on the money in my possession and the loans I have extended to relatives: Is zakat paid on the total amount, or is zakat paid on what is in my possession, and zakat is paid on the loans after they are recovered?

If the loans are owed by a solvent person and acknowledged, they are subject to zakat (definition) with your wealth each time a lunar year passes over them. However, if they are owed by an insolvent person or a procrastinator, zakat is due on them for one year only upon their collection. Paying zakat on a specific date without observing the completion of the year (hawl) is permissible according to the majority of scholars if it leads to an early payment of zakat, based on the Prophet, peace and blessings be upon him, accepting the early payment of Al-Abbas's charity for two years. However, delaying zakat beyond its due time without a valid excuse is not permissible.