Zakat to a Debtor

Question

(1) Farmers who are sunk in debt — for example, one owes three thousand, another five thousand: if such farmers are now made owners of zakat, and immediately, on the spot, having taken possession, they deposit it in the (cooperative) society in lieu of the debt, will the zakat of the zakat payer be discharged in this way or not, given that the cultivator will take possession and deposit it with his own hand? (2)

Answer

(1) It is proper to give a debtor so much zakat that he pays off his debt with it and then no amount equal to the nisab remains with him; in this way the zakat will be discharged. The recipient of zakat should take possession of it as owner, pay off his debt, and be relieved of it. (2) This too is proper. (3)

Source: Fatawa Mahmudiyya

Preview. The full text opens with JavaScript enabled.