Salam is a kind of sale price is paid immediately and called capital of Salam, commodity sold is postponed to a later time and called (musalam feeh) It is a defered sale for an immediate sale.

Parallel salam

It is a contract of salam the bank (musalam elihi) depends on its being carried out to meet debts and waits the seller (who is called musalam ) in a previous salam contract , but the bank does not suspend the previous salam contract on the ground of parallel Salam contract.

Steps for sales of salam

1)     The customer applies expressing his desire to sell a commodity showing descriptions, quantities and fixed price of the commodity promising to deliver the commodity later on. The bank pays the amount immediately.

2)     The bank studies the application carefully and being (certain of the seriousness of the operation fixes suitable conditions and gurantees approving the finance.

3)     The bank signs the contract of salam with the customer who will gurrantee delivery of the commodity fixing place and time of delivery.

4)     After securing guarantees accepted upon, the bank pays price of the commodity agreed upon to customer.

5)     The customer delivers the commodity on the agreed time.


Fields of application

Sales of salam are good for agricultural operations.

The bank directly deals with farmers who expect good production of a certain commodity or in case of production not good enough can obtain same commodity from other farmers to settle bank debts.