Answer
(Fatwa: 1030/813/D=1431)
It is lawful to give him zakah if he is poor i.e. he does not possess gold, silver, cash money equal to nisab or they do not reach equal to nisab if put together. But it is makrooh to give him zakah money equal to nisab. So if the said person fulfils his requirements by taking debt and after receiving zakah repays the loan, it will not be makrooh because it is allowed for a debtor to take zakah equal to the debt amount, but it is makrooh for him to collect money from people.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband