Khums on Loan
Khums
if a person borrows an amount of money and is not able to pay off the loan before the end of year, should the lender or the borrower...
Q: if a person borrows an amount of money and is not able to pay off the loan before the end of year, should the lender or the borrower pay its khums?
A: The borrower does not have to pay khums on borrowed money. However, concerning the lender, if the money lent was from his annual income prior to paying khums, and he can collect his money from the borrower before the end of his khums year, he has to pay khums on that money at the end of khums year. However, if he is unable to collect the money before his khums year ends, he does not have to pay khums now. He waits until he receives the money, then he will have to pay its khums.
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