 In this module, we shall look at another very interesting product based on the mode of finance of Salem. This product is interesting. However, after being in use by some Islamic banks, it has now been stopped by way of offering. This product was offered as an alternative to Tawarruq. As by now, you must have known that Tawarruq is a product which remains highly controversial, especially in the context of Islamic personal finance facilities. So those who put forth this product as a personal finance product based on Salem, their idea was to come up with a personal finance facility which is more feria-authentic as compared to Tawarruq. The Tawarruq product, when it is offered and of course in its structure, the way it is structured, it doesn't expose the transacting parties, especially the bank, to any kind of risks. In Islamic law, there is a principle or proverb which says that profit should be justified with taking risk. If a structure, if a linden, if an exchange is almost risk-free and if the transacting parties are drawing some benefit out of it, this cannot be justified. Hence, a product, Salem-based product for personal finance was designed and structured and offered by quite a few Islamic banks. However, given the force with which Tawarruq has taken over Islamic banking, this product has already gone out of the market. I am presenting this product to you because it has its usefulness and it is important that the products like this are structured, designed and offered by Islamic banks and financial institutions to ensure that they remain sharia-authentic. Now, this is a simple Salem sale. There is a bank, there is a customer, the bank buys a commodity on a Salem basis and pays the price upfront. Salem price is always paid upfront, so the price is paid by the bank to the customer and the customer has to deliver a chosen commodity on a future date T.J. After 30 days, after 90 days, after one year. So, after this Salem transaction between the bank and the customer, what happens? Of course, customer is happy because customer has received the financing. That Salem price is actually the financing amount. On a future date, say after one year, when the customer was supposed to deliver the commodity, it would buy the commodity from an exchange, from a commodity exchange for a price at that time say PX and would deliver that commodity to the bank and the bank would sell that commodity to the exchange immediately and would get that price. Now, this is a product which is riskier than a Tawarruk-based product. In case of Tawarruk, whatever the price is agreed between the customer and the bank, that is very certain. In this case, this price is actually uncertain. So, the bank and the customer would have to be very careful when choosing a commodity. In case of a Salem-based personal finance facility, normally a commodity is chosen which has stable prices. Not flat prices. Ideally, if the price remains flat for that commodity over the financing period, that would be the best one. However, I don't think there is any commodity which would remain flat over a period of three months, six months or one year. So, given this nature of riskiness of the product, this is deemed a better product from Sharia viewpoint. However, Islamic banks take a view that this is a risky product and hence it should be avoided.