Bay al Salam

(redirected from Bay Salam)

Bay al Salam

In Islamic finance, a sale in which delivery is deferred until some stated date in the future. It is used for agricultural products and other fungibles. In order to comply with the sharia, a salam contract must specify the quality of the good to be delivered, and payment must be made at the time the contract is entered.
References in periodicals archive ?
Keywords: Bay Salam financing, agriculture financing, farmer, Agriculture Financing.
The main objective of this study is to introduce an alternative to the conventional (interest based) agriculture financing through Bay Salam, which is novel and different from the other existing Salam models.
Application of islamic banking instrument (Bay Salam) for agriculture financing in Pakistan.