Salam is a sale and purchase contract whereby payment is made in cash and advance at the time of contract (by the Bank) but the delivery of the asset purchased (by the Bank) is deferred to a pre-determined date. Salam is a short-term fund-based facility.
Through Salam, a sale contract is executed for the future supply of goods. The facility can be provided to facilitate payment of wages and overheads. This product can suffice the requirements of the agriculture sector, commodity market and manufacturing industries.