Paying Interest on Due Payments of a Mosque
6-3-2002 | IslamWeb
Question:
I am from Macedonia and I am now living in Germany. Here we have so many Muslims from the same country. We have bought one mosque but we did not pay the whole price. Now we pay interest every month to the bank. The mosque that we bought is bigger than our need. Is this Haram? The second question is: Can we pay our Zakaat and Sadaqatul-Fitr to this mosque. Know that most of the money go the bank interest or Riba.
Answer:
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad 
is His slave and Messenger.
In principle, Muslims are obliged to spend only lawful money on building mosques or their maintenance, since Allah does not accept but what is lawful and pure.
However, considering the conditions of western Muslims and their dire necessity –if we could not say compulsion –for a mosque, to gather there for prayers, to learn and spread Islamic teachings and to call people towards Islam, considering their necessity, there is no harm to seek any means to provide a mosque even if it is possible only by dealing with Riba. Because, in this condition they are in the state of compulsion.
The majority of Muslim scholars are of the opinion that giving Zakat, or Zakatul-Fitr for building mosques or to their related matters, is not permissible. They believe that this is not among the eight categories that are liable to receive Zakat.
However, in this case, we believe that giving Zakat, or Zakatul-Fitr to pay the debts of the mosque is permissible. Yet, paying the debts of mosques from the money of Zakat, or Zakatul-Fitr is better than paying interest.
We believe so based on the opinion of those scholars who believe that such acts come under the category of “Sabeel Allah” (-in the cause of Allah –a category among the eight categories that are liable to receive money of Zakat).
Know that if the money of Zakat, or Zakatul-Fitr suffice you, then you should not deal with Riba. Dealing with Riba is permitted only at the time of a dire necessity which in this case no longer exists.
Allah knows best.