About Salam & Istaisna Product Of Meezan Bank Pakistan

1. PRESENTED BY:-
1. Abubakar Ali Toor
2. Muhammad Hanzala
3. Rana Usama Saif
4. Muhammad Mubashar
5. Anum Saleem
6. Shanzeh Naseem
7. Ramsha Akhtar
PRESENTED TO:-
Sir Asim Faheem

3. Project
Salam & Istisna Contract

4. Istisna contract
• An Istisna contract refers to an agreement to purchase
from a customer a non-existing asset, which is to be
manufactured or built according to the buyer’s
specifications and is to be delivered on a specified
future date at a predetermined purchase price

5. Salam Contract
• In Salam, the seller undertakes to supply specific
goods to the buyer at a future date in exchange of an
advanced price fully paid at spot. The price is in cash
but the supply of purchased goods is deferred.

6. Product Features & Conditions
• Price Determine
• Price to be known
• Flexible repayments
• A Binding Contract
• Goods Delivery
• Goods Rejection
• Defect Intimation Time
• Rescheduling the Payment Period
• Prior Delivery

7. Mode Of Financing
• Manufacturer will enter into a Master Istisna/ Salam Agreement
• Price is generally lower than the price in spot sale.
• Appoint the Manufacturer as an Agent
• Tenor of the facility must not exceed 180 days
• Bank charge its agency fee
• Agreed profit ratio
• The time of delivery is fixed
• Agent’s Responsibility of losses

8. Use Of Contract
• House financing (construction of houses, residential towers, etc.)
• Construction of buildings, plants, highways, bridges,
• Manufacturing of aircrafts, ships, machines, plant / factory and
equipment etc

9. Documents to be used in Istisna Financing
• Master Istisna/ Salam Agreement
• Master Agency Agreement for Sale of Goods
• Master Corporate Guarantee
• Ultimate Selling to Local Buyers
• Ultimate Selling to Foreign Buyers

10. Eligibility Criteria
 Customer Type
• Every Business Enterprises (Small / Medium / Corporate &
Commercial)
 Experience & Earning Capacity
• In the same business for the last 3 years
• In profit at least for the last 2 years

11. Thank You!