Paying Zakaat directly into creditor’s account

Question:-

Can Zakaat be directly transferred via EFT to the bank’s account, to assist a person who has a huge debt outstanding with the bank, and also has his current monthly installments to meet?

Answer:-

You cannot EFT the Zakaat funds directly to the bank in order to offset the outstanding debt (of the debtor with the bank). The poor person (that is eligible for Zakaat) needs to take possession of the Zakaat funds first, and then only can the funds be used to settle outstanding debts.

If you are trying to avoid giving the funds to the debtor himself, then the debtor (who is eligible to receive Zakaat funds) may appoint some person (such as Zaid), as his representative to receive Zakaat on his behalf, and he may further appoint Zaid as his representative to settle his debt with the bank (with the received Zakaat funds). In this instance, the funds may be electronically transferred into Zaid’s account and Zaid in turn will settle the bank. This procedure is in order.

ALLAH TA’ALA KNOWS BEST!

ANSWERED BY:

Mufti Mohammed Desai

Date: 14 Jumadal Ukhra 1443 / 17 January 2022