Is Zakat on wealth obligatory for borrowed money used in trade, or on its profits?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Borrowed money used for trade is subject to as trade goods, by assessing the capital and profits upon the completion of a hawl (lunar year). If it reaches the (minimum threshold) on its own or in combination with other wealth, its zakat of 2.5% is to be paid after deducting the amount of the debt. If, after deduction, the remaining amount reaches the nisab, zakat is paid; otherwise, it is not. This is because debt, according to the majority of scholars, negates zakat on hidden wealth such as cash and trade goods.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/45243
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 45243
- 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