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Fatwa CenterWants Zakat to redeem mortgaged property
Question
Since I didn't have capitol to do business I mortgaged my house where I live and out of the loan I did business but suffered loss in my business. I am being worried that I should redeem my house .Therefore please let me know whether I am entitled to receive Zakaat.
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger. We ask Allaah to exalt his mention as well as that of his family and all his companions.
We have already issued many Fatwas in relation to the eight kinds of people who are eligible for Zakat. So please refer to Fatwas: 88368 and 86546. Therefore, if you are indebted and have no money to repay this debt, you are entitled to take Zakat money. If you repay your debts by mortgaging your house but after this you become poor and destitute, then it is permissible for you as well to take Zakat money because of being poor and destitute. But if you do not become poor after repaying your debts and the mortgaged house is enough for repayments, then you are not entitled to take the Zakat money.
Allaah knows best.
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