Short answer
Salam is a sale where you pay the full price now and the goods are delivered at a set date later. It is halal, and the Prophet ﷺ allowed it in Madinah. The goods must be things that can be exactly described, with quantity, quality, delivery date and place all fixed at the start.
Salam is valid with these conditions: full payment in the contract session; goods that can be precisely specified by type, kind, quality and quantity; a known delivery date (at least a month in the relied-upon view); a known place of delivery for goods with transport costs; and the goods must be available in the market from the contract until delivery.
Other madhhabs
- Shafi'i
- The goods need only be available at the time of delivery, and an immediate salam with no delay is also valid.
- Maliki
- Payment may be delayed up to three days, and availability is required only at delivery.
- Hanbali
- Availability is required only at the time of delivery.
Explanation
When the Prophet ﷺ came to Madinah, people were paying in advance for fruit a year or two ahead. He said: "Whoever pays in advance for something, let him pay for a known measure and a known weight, until a known time." Salam is an exception to the rule against selling what you do not have, allowed because farmers and makers need money before the harvest or production.
Conditions, in short:
- The whole price is paid at the start. A deposit is not enough.
- The goods are fungible and can be described exactly: grain, cotton, oil, metals, standard manufactured items. Not gems, houses or one specific item, and in the Hanafi school not animals.
- Quantity, quality and grade are fixed.
- The delivery date is fixed, and the place too where transport costs matter.
- The buyer may not resell the goods before receiving them.
Islamic banks use salam to finance farmers and exporters, sometimes with a "parallel salam" where the bank sells similar goods to a third party under a separate contract. Mufti Taqi Usmani and AAOIFI allow this when the two contracts are independent.
For things that must be made or built to order, such as furniture, machinery or a house, the related contract is istisna, where payment can be in stages. See Is buying off-plan property halal? Salam is not a way to buy shares, currencies or gold for later delivery; those have their own rules. See Is currency exchange halal?
The evidence
Quran, Surah Al-Baqara 2:282
يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوٓا۟ إِذَا تَدَايَنتُم بِدَيْنٍ إِلَىٰٓ أَجَلٍۢ مُّسَمًّۭى فَٱكْتُبُوهُ ۚ وَلْيَكْتُب بَّيْنَكُمْ كَاتِبٌۢ بِٱلْعَدْلِ ۚ وَلَا يَأْبَ كَاتِبٌ أَن يَكْتُبَ كَمَا عَلَّمَهُ ٱللَّهُ ۚ فَلْيَكْتُبْ وَلْيُمْلِلِ ٱلَّذِى عَلَيْهِ ٱلْحَقُّ وَلْيَتَّقِ ٱللَّهَ رَبَّهُۥ وَلَا يَبْخَسْ مِنْهُ شَيْـًۭٔا ۚ فَإِن كَانَ ٱلَّذِى عَلَيْهِ ٱلْحَقُّ سَفِيهًا أَوْ ضَعِيفًا أَوْ لَا يَسْتَطِيعُ أَن يُمِلَّ هُوَ فَلْيُمْلِلْ وَلِيُّهُۥ بِٱلْعَدْلِ ۚ وَٱسْتَشْهِدُوا۟ شَهِيدَيْنِ مِن رِّجَالِكُمْ ۖ فَإِن لَّمْ يَكُونَا رَجُلَيْنِ فَرَجُلٌۭ وَٱمْرَأَتَانِ مِمَّن تَرْضَوْنَ مِنَ ٱلشُّهَدَآءِ أَن تَضِلَّ إِحْدَىٰهُمَا فَتُذَكِّرَ إِحْدَىٰهُمَا ٱلْأُخْرَىٰ ۚ وَلَا يَأْبَ ٱلشُّهَدَآءُ إِذَا مَا دُعُوا۟ ۚ وَلَا تَسْـَٔمُوٓا۟ أَن تَكْتُبُوهُ صَغِيرًا أَوْ كَبِيرًا إِلَىٰٓ أَجَلِهِۦ ۚ ذَٰلِكُمْ أَقْسَطُ عِندَ ٱللَّهِ وَأَقْوَمُ لِلشَّهَٰدَةِ وَأَدْنَىٰٓ أَلَّا تَرْتَابُوٓا۟ ۖ إِلَّآ أَن تَكُونَ تِجَٰرَةً حَاضِرَةًۭ تُدِيرُونَهَا بَيْنَكُمْ فَلَيْسَ عَلَيْكُمْ جُنَاحٌ أَلَّا تَكْتُبُوهَا ۗ وَأَشْهِدُوٓا۟ إِذَا تَبَايَعْتُمْ ۚ وَلَا يُضَآرَّ كَاتِبٌۭ وَلَا شَهِيدٌۭ ۚ وَإِن تَفْعَلُوا۟ فَإِنَّهُۥ فُسُوقٌۢ بِكُمْ ۗ وَٱتَّقُوا۟ ٱللَّهَ ۖ وَيُعَلِّمُكُمُ ٱللَّهُ ۗ وَٱللَّهُ بِكُلِّ شَىْءٍ عَلِيمٌۭ ﴿٢٨٢﴾
O you who have believed, when you contract a debt for a specified term, write it down. And let a scribe write [it] between you in justice. Let no scribe refuse to write as Allah has taught him. So let him write and let the one who has the obligation dictate. And let him fear Allah, his Lord, and not leave anything out of it. But if the one who has the obligation is of limited understanding or weak or unable to dictate himself, then let his guardian dictate in justice. And bring to witness two witnesses from among your men. And if there are not two men [available], then a man and two women from those whom you accept as witnesses - so that if one of the women errs, then the other can remind her. And let not the witnesses refuse when they are called upon. And do not be [too] weary to write it, whether it is small or large, for its [specified] term. That is more just in the sight of Allah and stronger as evidence and more likely to prevent doubt between you, except when it is an immediate transaction which you conduct among yourselves. For [then] there is no blame upon you if you do not write it. And take witnesses when you conclude a contract. Let no scribe be harmed or any witness. For if you do so, indeed, it is [grave] disobedience in you. And fear Allah. And Allah teaches you. And Allah is Knowing of all things.
Deferred obligations with a fixed term are lawful and should be recorded.
Sahih al-Bukhari 2240
Sahih... من أسلف في شيء ففي كيل معلوم ووزن معلوم إلى أجل معلوم ...
"Whoever pays in advance for something, let it be for a known measure, a known weight and a known term."
The basis and conditions of salam.
Where the ruling is recorded
- al-Hidaya, Kitab al-Buyu', Bab al-Salam. The Hanafi conditions, including availability from contract to delivery.
- AAOIFI Shari'ah Standards, Standard on salam and parallel salam. Modern bank use of salam.
- al-Mughni (Ibn Qudama), Kitab al-Salam. The views of the other schools on availability and timing.
Checked by our team. For a more accurate answer to your own situation, consult a scholar. Quran translation by Sahih International. Hadith Arabic from the standard editions of the six books and the Muwatta, with gradings as recorded there; the English is our own rendering. Spotted a mistake? Tell us.