Bai-Alsalam Loan

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Bai-Alsalam or Krishi loan method in Sarokar Saving and Credit Co-operative Society Limited Harinagar Sunsari is specially designed for agricultural purpose loans.

Bai-Salam may be defined as a contract between a Buyer and a Seller under which the Seller sells in advance the certain commodity (ies)/product(s) permissible under Islamic Shari‘ah and the law of the land to the Buyer at an agreed price payable on execution of the said contract and the commodity (ies)/product(s) is/are delivered as per specification, size, quality, quantity at a future time in a particular place.

In other words, Bai-Salam is a sale whereby the seller (farmer) undertakes to supply some specific commodity (ies) /product(s) to the buyer (Sarokar) at a future time in exchange for an advanced price fully paid on the spot.

Here the price is paid in cash, but the delivery of the goods is deferred.

The asset itself must have the following attributes:

Firstly, the asset must exist. Therefore, an asset which does not exist at the time of sale cannot be sold.

Secondly, the seller should have acquired the ownership of that asset. Therefore, if the asset exists, but the seller does not own it, he has no right to sell it.

Thirdly, mere ownership is not enough. It should have come into the possession of the seller, either physically or constructively. If the seller owns an asset, but he has not taken its delivery himself or through an agent, he cannot sell it.

Benefits of Bai-Al-Salam 

01. It’s totally free from interest.

02. The seller or the farmers need not pay any sort of cash amount to the buyer or Sarokar Co-operative.

03. Bai-Al-Salam does not create anything like over sue or interest payable.

04. there is no room for multiplying and compounding of the interest amount.

05. It develops the harmony and cooperation in society.