Yes — Zakat can be used to pay off debt. The Quran names al-gharimin, “those burdened with debt,” as one of the eight categories entitled to Zakat (Surah At-Tawbah, 9:60). A Muslim whose debts leave them unable to meet basic needs, who borrowed for a lawful purpose and cannot repay from their own surplus assets, can receive Zakat to clear those debts. Under the Hanafi view followed widely in Pakistan, the Zakat must pass into the debtor’s ownership — either given to them directly or paid to the creditor with their permission. What you cannot do is simply cancel a loan someone owes you and count it as your Zakat.
For millions of Pakistani households, debt is not a choice made for luxuries. It is how families survive a hospital bill, a funeral, a daughter’s wedding, or a month when the electricity bill doubles.
Research by the Secure Livelihoods Research Consortium, using national household survey data, found that on average one in five households in Pakistan is indebted, and that around 76% of indebted urban households spend 30% or more of their income on repayments. The same study identified marriage and death ceremonies, health, children’s education and repaying earlier loans as the main reasons families borrow from informal lenders.
The pressure has intensified. A survey of low-income households in Peshawar released in October 2026 found that nearly nine in ten had borrowed money just to meet daily expenses, and 95.1% said they were struggling to repay. Nationally, the World Bank reports that Pakistan’s poverty rate rose to 25.3% in 2024-25 after years of decline.
Informal debt rarely stays small. It compounds through interest, sale of assets, pulled children from school, and in the worst cases, years of bonded obligation. This is exactly the situation the Quranic category of al-gharimin was designed to address.
Allah lists the recipients of Zakat in Surah At-Tawbah, 9:60: the poor, the needy, those who administer Zakat, those whose hearts are to be reconciled, freeing captives, those in debt (al-gharimin), in the cause of Allah, and the stranded traveller. Debtors are named as a category in their own right, separate from the poor — a recognition that a person may have a home and a job yet be crushed by liabilities.
In a hadith recorded in Sahih Muslim, the Companion Qabisah ibn Mukhariq reported that the Prophet ï·º said asking for help is permissible for three people, one of whom is a man who has taken on a financial burden — he may ask until he has paid it off, then stop. The principle is clear: relief from debt is a legitimate claim on the community’s wealth.
Classical scholars describe two kinds of gharim. The first borrowed for his own lawful needs and cannot repay. The second took on debt to reconcile between disputing people or families. The Hanafi school, dominant in Pakistan, generally focuses on the first type and requires that the debtor not own nisab-level wealth in excess of what they owe.
Scholars generally require the following before Zakat is given to clear a debt:
Zakat is given to Muslim recipients. Non-Muslims in need can be helped generously through Sadaqah.
Debts for food, rent, medical treatment, education, a modest wedding or a failed lawful business qualify. Debts incurred for gambling or other sinful spending do not — although many scholars permit Zakat if the person has sincerely repented.
If the person owns assets beyond their basic needs that could settle the debt, they are expected to use them first. A family home, basic furniture, work tools and essential clothing are not counted against them.
The debt should be verifiable — a lender, an amount, and an obligation to repay. Vague or future liabilities do not qualify.
You cannot give Zakat to those you are already obliged to support, such as your children or spouse. Our guide on giving Zakat to family members explains which relatives can and cannot receive it.
Ask for the basic facts: who is owed, how much, why it was borrowed, and what the person owns. For larger amounts, see a written loan record, a lender’s statement, or a hospital or school bill that created the debt.
You can give the Zakat to the debtor so they repay the lender themselves, or — with the debtor’s explicit permission — pay the lender directly on their behalf. Under the Hanafi view, the debtor’s authorisation is what makes a direct payment to the creditor count as transfer of ownership (tamlik).
Where a debt carries interest, many scholars advise directing Zakat toward the principal and negotiating the lender down where possible. Seek scholarly guidance on interest-bearing debts specific to your case.
Intend that the payment is Zakat when you give it or when you set the amount aside. You do not have to tell the recipient that it is Zakat if that would embarrass them.
Note the date, amount and recipient. If you give through a trust, keep the receipt.
Situation | Zakat Eligible? | Why |
Family borrowed for a parent’s surgery and cannot repay | Yes | Lawful need; unable to repay |
Widow owes three months’ rent and utility bills | Yes | Basic needs; no surplus assets |
Shopkeeper’s small business failed, leaving supplier debt | Yes, if no surplus assets | Lawful trade debt |
Man borrowed to fund an extravagant wedding but owns spare property | No | Surplus assets can repay |
Debt from gambling, not repented | No | Debt for unlawful purpose |
Your own adult son’s credit card debt | No (as Zakat) | Dependants cannot receive your Zakat |
A friend owes you money and you want to cancel it as Zakat | No | No transfer of ownership takes place |
This is one of the most common questions — and the answer, according to the Hanafi school and the majority of scholars, is no. Zakat requires transferring wealth into the recipient’s ownership. Writing off a debt is a release, not a transfer, so it does not discharge your Zakat.
Forgiving a struggling debtor is still a beautiful act. The Quran says that if a debtor is in hardship, grant them time until ease — and remitting the debt as charity is better for you, if only you knew (Surah Al-Baqarah, 2:280). It simply needs to be counted as Sadaqah, not Zakat.
Feature | Zakat for Debtors | Qarz-e-Hasna | Debt Forgiveness |
Is it repaid? | No | Yes, without interest | No |
Counts as Zakat? | Yes | No | No (counts as Sadaqah) |
Best for | People who can never repay | People with income who need breathing room | Your own debtors in hardship |
Ownership transfer | Yes | Temporary loan | No |
An interest-free loan suits a family with income who simply needs time; Zakat suits a family who will never climb out alone. Read more about Qarz-e-Hasna and how it works in Pakistan.
Clearing a debt solves today’s crisis; preventing the next debt solves tomorrow’s. Amanatdaar Welfare Trust’s financial hardship assistance programme provides monthly allowances to deserving households so they can cover essentials without returning to informal lenders. Donors can support a family for PKR 12,000 a month or PKR 144,000 a year.
Families whose debt began with illness can be supported through medical support, while those who need a way to earn can be referred to small business support. Zakat given through the trust’s Zakat programme is directed only to verified, eligible recipients.
Perspective from Amanatdaar Welfare Trust: “Behind most of the cases we see is a loan taken in an emergency — a hospital bill, a funeral, a roof that collapsed in the rains. The interest grows faster than the family’s income, and soon they are borrowing to pay the last loan. Our role is to verify each case carefully, so Zakat reaches those who are genuinely gharimin, and then to support the family so they never need that lender again. That is what Amanah means to us.”
Yes. Debtors (al-gharimin) are a named category of Zakat recipients in Surah At-Tawbah, 9:60. The debt must be for a lawful purpose, genuinely due, and beyond the person’s ability to repay from surplus assets.
Yes, provided the debtor authorises you to pay on their behalf. Under the Hanafi view, this authorisation makes the payment count as a transfer of ownership to the debtor, which Zakat requires.
No, according to the Hanafi school and most scholars. Forgiving a debt does not transfer wealth to the recipient. It is still a highly rewarded act of Sadaqah, but your Zakat remains due separately.
If the borrower is eligible and the debt was for a lawful need, many scholars permit Zakat for the principal. Because these debts usually carry interest, ask a scholar about your specific case and try to negotiate the interest down.
Yes. A family home that the debtor lives in is a basic need and is not counted against them. What matters is whether they own surplus assets beyond their needs that could settle the debt.
Yes, if your brother is eligible and not financially dependent on you. Siblings, aunts, uncles and cousins can receive your Zakat; your parents, children and spouse cannot.
Amanatdaar’s team assesses each family’s circumstances, documents their needs, and directs support through programmes such as financial hardship assistance and medical support. As a registered NGO in Pakistan, its audited reports are published on the website.
Debt is one of the quietest forms of poverty in Pakistan. A family can look stable from the outside while borrowing every month to stay afloat. Islam does not ignore that family — it names them in the Quran and gives them a right in the wealth of those who pay Zakat.
Given correctly, your Zakat can do something few other forms of help can: it can end a cycle, not just ease a month. Verify the need, transfer ownership properly, and pair relief with support that stops the next loan.
To direct your Zakat to verified families struggling with debt and hardship, give through Amanatdaar’s financial hardship assistance programme or its wider Zakat programme.
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