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ZAKAH.. [Obligatory Charity] - zakah of loan

Paying Zakaah in the name of a Loan

Question: A man gives zakaah to a deserving person in the name of a loan and not stating that it is zakaah. He intends to give zakaah and has no intention of receiving the money back. Is the zakaah valid?

Answer: The amount in the stated case will be zakaah if he intends zakaah and does not want the money back. The same will apply if he makes the intention of giving a gift. And Allaah knows best what is most correct.

Fatawa Rahimiyyah vol.3