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﴿ فَاسْأَلُوا أَهْلَ الذِّكْرِ إِن كُنتُمْ لَا تَعْلَمُونَ ﴾

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Zakah on money traded with from a riba (usury or interest) bank loan

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Question:
I took a loan of one hundred thousand from the bank and used it for trade. After a year, the remaining amount was one hundred and forty thousand. Do I deduct the remaining loan amount from the bank and pay zakah on the rest, or not? Or do I pay zakah on the entire amount?

Answer:
My brother, you are asking after you have already done it and taken out the riba loan. You must repent to Allah the Exalted and get rid of the riba by putting it in a project that eliminates it and benefits people. This is the sign of sincere repentance: that you get rid of the riba. You get rid of the riba along with the repentance. As for you saying, "I will give it in charity," that is not permissible. That means giving in charity something that is haram (forbidden), which is not permissible. But if you repent and you have riba money, the way to get rid of it is to put it in a public project. Yes.

The presenter:
May Allah reward you.
Source سيرة الخليفتين عثمان وعلي رضي الله عنهما — alfawzan.live (1:02:48)

The Arabic text is a machine transcription of the audio recording.

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