Can Zakat Be Adjusted Towards A Loan?
If I understand your question correctly, you are asking whether or not the money that you loaned to someone and then later realized that he is a deserving person can be considered as Zakat. Yes, you can do this. However, please understand that one has to sincerely evaluate on their own if they are waiving the loan because they find the borrower to be deserving or doing it because the borrower has defaulted. In the latter case it should be considered a loss and cannot be considered as Zakat. Please also see: Discussion 71725 • Reply 71776