Repaying Loans with Zakat: What You Need to Know
Question: Can we repay a loan using our zakat?
Answer: It seems the question is asking whether a person who has taken a loan from someone can repay that loan using zakat. If this is the question, the answer is no—zakat cannot be used to repay a loan. You must use other funds to repay a loan, and zakat should be given to those who are entitled to receive it. If the person you owe the loan to is eligible to receive zakat, you may give them zakat, but the loan will still remain; the zakat will not be considered as payment towards the loan.
Respondent: Sheikh Maqbool Ahmed Salafi Hafizahullah
Jeddah Dawah Center, Saudi Arabia
Interpreter: Hasan Fuzail