1. Do we pay zakat for money (loan) borrowed for investment purpose? We are repaying in irregular instalments as per capability.
2. Do we pay zakat for money lent which we haven’t been repaid for few years? What are conditions for this type of loan?
3. We have invested our savings in a business which is currently running in loss. Should we pay zakat for this?
Shaikh Waleed Boghdady:
Was this loan on interest (riba)? If yes, then this is one of the major sins and usually the path of loans for investment with riba is the reason for many homes and families to be destroyed. If you take the path of riba it will destruct your whole life. Never ever even get close to Riba.
1.-If there’s no interest on it then of course there is no zakah for the loan money.
2.- If you lend others money and they do not repay you then there is no zakah on this .
3.-There is no zakah on a business which is currently running in loss.
What is zakah? Zakah is binding on you when you have gold or money savings and it remains with you for a year then you have to pay zakah on this. As for money put in business, this has another ruling.