A friend wanted a loan to pay his debts.

Answer

Since the niyyat of Zakaat was made at the time of giving the money to the person, it may now not be repossessed. You should simply tell the person that at the time you gave the money you had intended it to be a gift, hence you cannot now take it back. If the person insists on returning it, then you should say that: 'I am accepting the money as a gift from you." The money is the property of the one to whom it was initially given with the intention of Zakaat.