Waiving loan with the intention of Zakaat
It is not valid if the lender wants to waive the loan of the borrower by making an intention (Niyyah) of Zakaat. However, the lender can give the amount to the borrower and have him return it. As mentioned in Durre Mukhtaar, Kitaab Uz Zakaat and Radd Ul Muhtaar, Kitaab Uz Zakaat.