Bai Salam

Funds transfer Cheque Card Electronic Bill payment Instant payment Mobile Wire RTGS NS Direct debit ACH Giro SWIFT Correspondent account CLS CIPS SPFS BRICS PAY Terms Related topics Asset pricing Bond (finance) Capital structure Corporate finance Cost of capital Equity (finance) Ethical banking Exchange-traded fund Financial law market participants regulation risk system History of banking List of banks Market risk Personal finance Public finance Security (finance) Shares Sustainable Development Goals Systematic risk Systemic risk Time value of money Too big to fail Too connected to fail Watered stock Category Commons Portal v t e Bai Salam (Arabic بيع سلم, more accurately transliterated as Bai us salam ) is a contract in which advance payment is made for goods to be delivered at a future date, following Islam and Islamic shariah . The seller undertakes to supply some specific goods to the buyer at a future date in exchange of an advance price fully paid at the time of contract. It is necessary that the quality of the commodity intended to be purchased is fully specified leaving no ambiguity leading to dispute. Bai salam covers almost every thing which is capable of being definitely described as to quality, quantity and workman ship. However, this can also be used to finance the working capital needs to the customer. It is one of the most popular Islamic Modes of finance used by banks in Islamic countries to promote riba -free transactions. Bai-Salam has been permitted by the Islamic prophet Mohammed himself, without any difference of opinion among the early or the contemporary jurists, notwithstanding the general principle of Shariah that the sale of a commodity which is not in the possession of the seller is not permitted. Upon migration from Makkah, Mohammed came to Madinah, where the people used to pay in advance the price of fruit or dates to be delivered over one, two or three years. However, such sale was carried out without specifying the quality, measure or weight of the commodity or the time of delivery. Mohammed ordained: “Whoever pays money in advance for fruit to be delivered later should pay it for a known quality, specified measure and weight (of dates or fruit) of course along with the price and time of delivery” "Banglapedia: Islami Bank Bangladesh Limited" .

Funds transfer Cheque Card Electronic Bill payment Instant payment Mobile Wire RTGS NS Direct debit ACH Giro SWIFT Correspondent account CLS CIPS SPFS BRICS PAY Terms Related topics Asset pricing Bond (finance) Capital structure Corporate finance Cost of capital Equity (finance) Ethical banking Exchange-traded fund Financial law market participants regulation risk system History of banking List of banks Market risk Personal finance Public finance Security (finance) Shares Sustainable Development Goals Systematic risk Systemic risk Time value of money Too big to fail Too connected to fail Watered stock Category Commons Portal v t e Bai Salam (Arabic بيع سلم, more accurately transliterated as Bai us Salami ) is an Islamic contract in which full payment is made in advance for specific goods (often agricultural products) to be delivered at a future date. It is necessary that the quality of the commodity intended to be purchased is fully specified leaving no ambiguity leading to dispute. Bai salam covers almost every thing which is capable of being definitely described as to quality, quantity and workmanship. It is one of the most popular Islamic Modes of finance used by banks in Islamic countries to promote riba -free transactions. Early and contemporary jurists agree on the legitimacy of Salam. In general under Shariah law, no sale is lawful unless the goods being sold are in existence at the time of the agreement. Salam sale is an exception found in the hadith of the prophet of Islam Muhammad (collections of his sayings and teachings) provided the goods are defined and the date of delivery is fixed. Upon migration from Makkah, Mohammed came to Madinah, where the people used to pay in advance the price of fruit or dates to be delivered over one, two or three years. However, such sale was carried out without specifying the quality, measure or weight of the commodity or the time of delivery. Mohammed ordained: “Whoever pays money in advance for fruit to be delivered later should pay it for a known quality, specified measure and weight (of dates or fruit) of course along with the price and time of delivery”. In Islam, Sirajul ; Jamal, Ahmed A. Banglapedia: National Encyclopedia of Bangladesh (Second ed.). Asiatic Society of Bangladesh .

Funds transfer Cheque Card Electronic Bill payment Instant payment Mobile Wire RTGS NS Direct debit ACH Giro SWIFT Correspondent account CLS CIPS SPFS BRICS PAY Terms Related topics Asset pricing Bond (finance) Capital structure Corporate finance Cost of capital Equity (finance) Ethical banking Exchange-traded fund Financial law market participants regulation risk system History of banking List of banks Market risk Personal finance Public finance Security (finance) Shares Sustainable Development Goals Systematic risk Systemic risk Time value of money Too big to fail Too connected to fail Watered stock Category Commons Portal v t e Bai Salam (Arabic بيع سلم, more accurately transliterated as Bai us Salami ) is an Islamic contract in which full payment is made in advance for specific goods (often agricultural products) to be delivered at a future date. It is necessary that the quality of the commodity intended to be purchased is fully specified leaving no ambiguity leading to dispute. Bai salam covers almost every thing which is capable of being definitely described as to quality, quantity and workmanship. It is one of the most popular Islamic Modes of finance used by banks in Islamic countries to promote riba -free transactions. Early and contemporary jurists agree on the legitimacy of Salam. In general under Shariah law, no sale is lawful unless the goods being sold are in existence at the time of the agreement. Salam sale is an exception found in the hadith of the prophet of Islam Muhammad (collections of his sayings and teachings) provided the goods are defined and the date of delivery is fixed. Upon migration from Makkah, Mohammed came to Madinah, where the people used to pay in advance the price of fruit or dates to be delivered over one, two or three years. However, such sale was carried out without specifying the quality, measure or weight of the commodity or the time of delivery. Mohammed ordained: “Whoever pays money in advance for fruit to be delivered later should pay it for a known quality, specified measure and weight (of dates or fruit) of course along with the price and time of delivery”. In Islam, Sirajul ; Jamal, Ahmed A. Banglapedia: National Encyclopedia of Bangladesh (Second ed.). Asiatic Society of Bangladesh .