Salam

Q: What is Salam?

Salam is a Shariah-compliant advance purchase contract where Amal Takaful pays the full price now for goods to be delivered at a future date.

Q: How is Salam different from other financing products?

Murabaha – Used to buy assets that are already available.Ijara – Used to lease existing assets.Salam – Used to pay now for goods that will be produced or delivered in the future.

Q: Who benefits from Salam?

Farmers/Producers: Get cash upfront to buy inputs and cover production costs.Traders/SMEs: Lock in supply and price for future goods, avoiding price fluctuations.Manufacturers: Secure raw materials or future inventory at fixed cost.

Q: What kind of goods can be financed under Salam?

Agricultural products (maize, rice, beans, sugarcane, etc.)Commodities and raw materials (oil, cotton, sunflower, etc.)Standardized goods that can be clearly specified in quantity and qualityNote: Salam cannot be used for unique items (like one-of-a-kind machinery or property).

Q: How are price and delivery managed?

Price is fixed at the time of contract.Delivery is made at the agreed date and place.All details (quantity, grade, packaging, timeline) must be clearly defined to avoid ambiguity.

Q: Can Salam help traders secure inventory?

Yes. Traders often use Parallel Salam, where Amal Takaful finances a farmer/producer and arranges delivery to the trader on the agreed date. This ensures both farmer and trader benefit.

Q: What if goods are not delivered on time or are of poor quality?

The Salam contract includes remedies:Buyer may reject non-compliant goods.Substitution with agreed alternatives.Delivery adjustments or rescheduling by mutual agreement.

Q: How quickly can I get Salam financing?

For small-scale Salam requests, approval can take 3–5 working days once all documents and details are submitted.

Securing Your Future Needs Today

This is a powerful and practical financial tool designed for transactions where payment is made in advance for goods that will be delivered at a later time. It's especially useful for farmers and producers

Full Prepayment Now

Seller gets cash to produce

Price Certainty

Hedge against future price swings

Shariah-Compliant

real trade, no interest or ambiguity

What Is Salam?

Salam is a Shariah-compliant advance purchase where the price is paid in full now for goods delivered at a future date.
It’s ideal for:

Farmers/Producers who need upfront cash to produce and deliver later.
Traders/SMEs who want to lock future inventory at a fixed price and delivery date.

Everything is specified at the start: quantity, quality/grade, delivery date, place, and price — no ambiguity, no interest.

Example:

You are a maize farmer. You expect to harvest maize in 4 months. Right now, you need cash for seeds, fertilizer, and labor — but you don’t have enough money.

Here’s how Salam helps:

You make an agreement with us that you will deliver 100 bags of grade-A maize (100kg each) in 4 months.
We pay you the full price today (for all 100 bags).
You use that money to buy farm inputs and cover your costs.
At harvest time, you deliver the 100 bags of maize at the agreed place and date.

You get money now when you need it.

We get the maize later at the agreed price.

The deal is clear, fair, and halal.

Key Features:

Full Payment Upfront – The buyer (Amal Takaful) pays the seller in full at the time of contract.
Future Delivery – The goods are delivered later on a clearly agreed date and place.
Specified Goods – Quantity, quality/grade, packaging, and delivery details are all fixed in the contract.
Shariah-Compliant – No interest (Riba); based on real trade, not lending.
Win-Win Model – Farmers/producers get upfront capital to produce, and buyers secure goods at a fixed price.

Salam provides a great way to get immediate cash for producers who need funds to run their operations, while guaranteeing the buyer a supply of goods at a pre-agreed price.

How Salam Works

You Pay Upfront

You, as the buyer, pay the full price for specific goods at the time the contract is signed.

Guaranteed Future Delivery

The seller (or us, on your behalf) then promises to deliver those goods at a future, agreed-upon date.

Clarity is Key

All aspects of the goods must be clearly defined upfront. This includes their characteristics, quality, quantity, and the exact date and place of delivery. This ensures a transparent and fair agreement.

Who Can Apply?

What You’ll Need to Apply

Lock Your Price & Supply

Avoid uncertainty. Finance production, secure inventory, and keep your business moving — ethically and transparently.

Frequently Asked Questions (FAQ)

What is Salam?

Salam is a Shariah-compliant advance purchase contract where Amal Takaful pays the full price now for goods to be delivered at a future date.

How is Salam different from other financing products?

Murabaha – Used to buy assets that are already available.
Ijara – Used to lease existing assets.
Salam – Used to pay now for goods that will be produced or delivered in the future.

Who benefits from Salam?

Farmers/Producers: Get cash upfront to buy inputs and cover production costs.
Traders/SMEs: Lock in supply and price for future goods, avoiding price fluctuations.
Manufacturers: Secure raw materials or future inventory at fixed cost.

What kind of goods can be financed under Salam?

Agricultural products (maize, rice, beans, sugarcane, etc.)
Commodities and raw materials (oil, cotton, sunflower, etc.)
Standardized goods that can be clearly specified in quantity and quality

Note: Salam cannot be used for unique items (like one-of-a-kind machinery or property).

How are price and delivery managed?

Price is fixed at the time of contract.
Delivery is made at the agreed date and place.
All details (quantity, grade, packaging, timeline) must be clearly defined to avoid ambiguity.

Can Salam help traders secure inventory?

Yes. Traders often use Parallel Salam, where Amal Takaful finances a farmer/producer and arranges delivery to the trader on the agreed date. This ensures both farmer and trader benefit.

What if goods are not delivered on time or are of poor quality?

The Salam contract includes remedies:

Buyer may reject non-compliant goods.
Substitution with agreed alternatives.
Delivery adjustments or rescheduling by mutual agreement.

How quickly can I get Salam financing?

For small-scale Salam requests, approval can take 3–5 working days once all documents and details are submitted.

Apply for Salam

Apply Now in 3 Easy Ways. Choose the method that works best for you: