Ibn MasoodDarul Ifta Ibn Masood

Using interest funds for public works

English
Banking/ Interest

Question

Can interest funds be utilized to clean a vacant plot and erect a fence for the benefit of all the residents of our area?

Answer

By erecting a fence and cleaning a vacant area in the locality, all the residents in the area which comprise of people that are wealthy and poor, will benefit. It is not permissible for people possessing the Zakaat Nisaab to benefit from such funds, hence interest funds should not be used for the said project.

However, if the interest funds are given to a poor person that qualifies as a recipient of Zakaat, and he, thereafter (voluntarily) donates the funds towards erecting the fence and cleaning the area, then adopting such a procedure will be acceptable.

Answered by
Mufti Mohammed Desai
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