Uploaded by Hasan Shahid

Islamic Finance

Bai Salam is an Islamic contract in which full payment is made in advance for specific goods (agriculture
product) 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. For Islamic
banks this product is an ideal for Agriculture financing but can also be used to finance the working
capital needs to the business customer. It is one of the most popular Islamic Modes of finance used by
banks in Islamic countries to promote riba-free transactions. Islamic finance or sharia-compliant finance is
banking or financing activity that complies with sharia and its practical application through the development of
Islamic economics. Some of the modes of Islamic banking/finance include Mudarabah, Wadiah, Musharaka,
Murabahah, and Ijara.