Zakat on Loan

**Saad** · 23-08-2007, 09:07 PM

Do you have to give zakat on the money you have given out as a loan to someone?

**student786** · 23-08-2007, 09:48 PM

Zakat is payable by you on loans you have given to your friends and relatives. It should be treated as cash in hand. You may deduct loans payable by you to arrive at the net present value of your wealth.

**Saad** · 24-08-2007, 02:40 AM

Originally Posted by student786

Zakat is payable by you on loans you have given to your friends and relatives. It should be treated as cash in hand. You may deduct loans payable by you to arrive at the net present value of your wealth.

Can you explain the bold part in little more detail.