The difference between these two is due to an effect called compounding. This is where, when the interest repayments that you receive throughout the year are reinvested, they start earning interest themselves.
Market Rate (currently 5.3% per annum) is the rate investors could achieve if they are matched to borrowers throughout the year and all principal and interest is reinvested.
The Lender Rate shown on your loans (currently 5.18% per annum) is the actual annualised rate that your funds are lent at, known as the nominal rate. This is the rate investors could achieve if they are matched to borrowers throughout the year and only principal not interest is reinvested.
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