Effective rate indicates how much the potential interest lenders will get, by reinvesting the interest and capital they get from installment repayment.

For example: a lender funded a Grade B1 loan with an effective rate of 18.52%, then the next month that lender gets the first month repayment.

If the lender reinvest the repayment which consist of first month capital and interest to a new same criteria loan (B1), the interest will be compounded which equals to the effective rate.

If you want to check the flat rate of a loan in KoinP2P marketplace, you can click the chosen loan and check under detail tab.