Zakat on money lent

Question

A person gave someone two thousand rupees as a qard hasan (interest-free loan), and there is hope that he will repay it, but for four years not a single paisa (a small copper coin, a fraction of a rupee) of the loan has been repaid so far. Is zakat wajib on the person who gave the loan or not? If zakat is to be given, what is the way to do it? Please write with references.

Answer

Upon recovering this loan it will be binding to pay its zakat: for however many years it takes to be recovered, he will pay the zakat of each year. Thus it is in “Radd al-Muhtar”.

Source: Fatawa Mahmudiyya

Preview. The full text opens with JavaScript enabled.