Is Zakat obligatory on an amount of 5,000 Riyals that I loaned to a needy person, and is it permissible to count this amount from the Zakat of my saved money?

If the debtor is in straitened circumstances, the creditor is not obligated to pay zakat (definition) on the debt until it is recovered. Some scholars hold the view that zakat should be paid for one year after recovery, while others believe it should be paid for all past years, which is closer to piety (wara).

It is permissible for the creditor to give zakat to their poor debtor. However, it is not permissible to waive the debt and count it as zakat, because zakat is a right of Allah Almighty, and the creditor is not permitted to benefit from it by recovering their debt.