Ruling on giving Zakah to someone who owes an interest-based loan

What is the ruling on giving Zakaah to a person owing a loan to a bank? This loan is interest-based and he borrowed it to buy a house. The purpose is to get him out of the forbiddance of this loan so that he is given a sum to finally repay it completely. Please advise. May Allaah Reward you.

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.

First, this person should be reminded of the great sin he committed which is dealing in usury unless he had an excuse. He should first repent to Allaah The Almighty and regret the sin he committed. Allaah The Exalted Accepts the repentance of those who repent. There is no harm in paying Zakah to him for the mentioned purpose because he is among the indebted people who deserve Zakah and because this helps in reducing the corruption resulting from usury.

Shaykh Ibn ‘Uthaymeen in Liqaa’aat Al-Baab Al-Maftooh, was asked this question: “If someone was committed to an interest-based loan and dealt with a usury-based bank, then went bankrupt, should he be given from Zakah?” He replied: “Yes, because he is included in the verse in which Allaah The Almighty Says (what means): {and for those in debt.} [Quran 9:60] There is no harm in giving him the value of the original capital. Concerning the interest, if he was in a country where, if the matter is reported to the government, this interest would be canceled, we would say: do not help him because this indebted person can get rid of the interest. If he is in a country that approves of this interest, this means that the indebted person should pay these interests. It is permissible to give him money to pay it back.”

Allaah Knows best.