Fatwa Explorer

Fatwa #750820 December 2002United Kingdom

Is it permissible to give interest money to the poor?

Question

A friend of mine has recently started a scheme which encourages muslims to give to the poor through his organisation. Is the use of this money in such a way halal?

Answer

Interest monies must be given to the poor and needy who are eligible to accept Zakaat without the intention of reward. However, interest received from government institutes, eg. post office could be used to offset government taxes. Interest received from private banks cannot be used to offset taxes. It may be used to offset interest charged from the same bank.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai
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