“I once asked abu ‘Abd Allah (a.s.), about a man to whom another man owes a certain amount of loan who is poor to whom he wants to pay Zakat. He (the Imam) said, ‘The poor may have something in his possession or potentials, which is equal in value to the amount of loan, such as certain effects like a house, household effects or a certain work that he performs. He (the lender) can offset the amount of Zakat that he owes against the loan that the poor person owes to him. It is not harmful. However, the poor person may not have any of the things mentioned like a house, household effects or a certain work for which he receives payment. He (the lender) cannot offset the amount of Zakat that he owes against the loan that the poor person owes to him; instead the lender must pay Zakat to him and not offset anything.”’