Per-diem interest

What is Per-diem interest?

Per-diem interest meaning in finance terminology / glossary / dictionary is:
Per-diem interest is one day’s worth of interest on a debt. Since interest rates are based on a period of one year, per-diem interest is calculated by extrapolation. The total annual interest expense is calculated based on the rate, and then that figured is divided by 360 or 365 (for ordinary and exact interest, respectively) to calculate per-diem interest. Per-diem interest is used to calculate the first month’s interest when a loan funds on a day other than the first of the month.