Title: ZAKAT ON GOLD LOAN

Question: Abdul took loan from bank by keeping 100 grams of gold (jewellery) in bank. He has 100 grams of gold in hand for this he has to pay zakah. Will Abdul have to pay zakah for the gold which is in the bank on which he took loan. Please clarify.

Answer ID: 41184Posted on: Aug 31, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 1300/866/H=1433) If he had only 100 gram gold and received loan by depositing the gold as security or any other gold kept in the bank as security and got the loan from the bank then there is zakah on the gold and jewellery which is kept in the bank: فلا زكوة على مكاتب لعدم الملك التام ولا فى كسب ما ذون ولا فى مرهون بعد قبضه اهـ در مختار وفى شرحه الفتاوي رد المحتار اى لا على المرتهن لعدم ملك الرقبة ولا على الراهن لعدم اليد اهـ ج 2 ص 7