If a loan which we gave was not paid back for many years and the person is either not willing or not in a position to repay do we need to pay zakah for that money which is not in our possession. Do we need to give lifelong zakah for this?
The loan to a poor is different than the loan to a rich who is able to repay.
If the loan is given to a poor who is not able to pay back:
– You do not pay Zakah for it until you get it back in your hands.
– If this loan (to a poor) was for several or many years, you only pay the Zakah for one year. (For the past year only)
As this loan was considered lost before it was repaid. A lost loan has no Zakah on it.