Salam: –

Is a form of financing (contract) in which the seller/customer undertakes to supply specific goods to the buyer/bank at a future date in exchange for an advance price fully paid at the spot, but the supply of purchased goods is deferred to a fixed date?

Features

• The seller/customer gets in advance the money he/she/it wants in exchange of his/her/its obligation to deliver the commodity later.
• The bank buys the farm output to be produced in the future against the full spot payment of the price which may be utilized by the farmer to meet his/her/its financing needs
• Coopbank Islamic shall provide Salam Finance for those customers who need it against collaterals or insurance coverage as appropriate to mitigate the risks arising from such financing.
  • The customer shall deliver the subject matter of Salam financing to Parallel Salam customer on the maturity date as per the prearrangement made between the customer and the bank.
  • Coopbank Islamic shall establish Parallel Salam Financing contractual agreement with other customers who is willing to pay the value of Salam Financing plus profit and agreed to collect goods of Salam Financing at the time of maturity.

• Please contact Coopbank Islamic to get more detailed information and advice.