Zakah on the funds available from a Real Estate Fund loan
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Fatwa No. ( 2654 )
Q: A poor man borrowed from the Real Estate Development Fund to build a residential building. After the building was completed and he moved in, he had a surplus from the loan. He then invested this surplus amount in trade, and the man pays the bank installments from the funds available from this amount. Is zakah obligatory on this money, and is this money considered his property or the state's property?
A: This money is considered his property, and its ruling is the same as the ruling for the rest of his wealth. Zakah is obligatory on it if a lunar year has passed after he received it from the bank, provided it reaches the nisab (minimum threshold for zakah) on its own, or together with the other money he has, including its profits. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: A poor man borrowed from the Real Estate Development Fund to build a residential building. After the building was completed and he moved in, he had a surplus from the loan. He then invested this surplus amount in trade, and the man pays the bank installments from the funds available from this amount. Is zakah obligatory on this money, and is this money considered his property or the state's property?
A: This money is considered his property, and its ruling is the same as the ruling for the rest of his wealth. Zakah is obligatory on it if a lunar year has passed after he received it from the bank, provided it reaches the nisab (minimum threshold for zakah) on its own, or together with the other money he has, including its profits. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.