Darul Iftaa Mahmudiyyah

A book refers a Maseehah Hadith-interest can be used to build Orphange's and the like. Please clarify this.

· 29 Dhuʻl-Qiʻdah 1421 AH1 min readFatwa 2223English

Question

Will institutions eg: Hospitals, Drug & Alcohol Rehab Ctrs, Old Age homes, or disabled / mental centres fall under this rule. Unfortunately Muslims have and do accrue interest and need to dispose of this, please clarify where this can be done in the above. Jazaku-Mullah.

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.

Interest monies cannot be used to build institutions.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai
FATWA DEPT.

Answered by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/2223
Fatawa SA: https://fatawa.co.za/fatwa/askimam-2223

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