Spending Zakah on the Debtor
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Q8: Is it permissible to spend zakah on a debtor ? That is, if a man has borrowed a sum of money to buy land, for example, is zakah to be spent on him? And to what extent is zakah due to a man who has borrowed money to buy clothes for his children or a car to help him with the necessities of life?
A8: If a person borrows a sum of money that he is in dire necessity for, to build a house for his residence, or to buy suitable clothes, or for those whose financial maintenance is obligatory upon him, such as his father, his children, or his wife, or a car on which he toils to earn a living from which he spends on himself and those whose maintenance is obligatory upon him, for example, and he has no means to repay the debt, then he is entitled to be given from the zakah funds what will help him to pay off his debt. However, if he borrowed the money to buy land that would be a source of wealth for him, or to buy a car so that he would be among the people of affluence or luxury, then he is not entitled to be given from the zakah.
And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad and his family and companions.
A8: If a person borrows a sum of money that he is in dire necessity for, to build a house for his residence, or to buy suitable clothes, or for those whose financial maintenance is obligatory upon him, such as his father, his children, or his wife, or a car on which he toils to earn a living from which he spends on himself and those whose maintenance is obligatory upon him, for example, and he has no means to repay the debt, then he is entitled to be given from the zakah funds what will help him to pay off his debt. However, if he borrowed the money to buy land that would be a source of wealth for him, or to buy a car so that he would be among the people of affluence or luxury, then he is not entitled to be given from the zakah.
And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad and his family and companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.