Istisna

Istisna refers to a contract for the acquisition of goods by specification where the price is paid at the time of contract, or paid gradually in accordance with the progress or on completion of a job. This kind of contract is commonly used by Islamic institution (Bank) as an agreement with a client to finance its various manufacturing and construction needs. The bank takes care of paying the contracted developer or builder in full or as specific stages of the work is completed. The client then pays the bank as per agreed payment plan.