diff --git a/app/models/loan_repayment_schedule.py b/app/models/loan_repayment_schedule.py
index dcba841..a892f0a 100644
--- a/app/models/loan_repayment_schedule.py
+++ b/app/models/loan_repayment_schedule.py
@@ -2,6 +2,7 @@ from datetime import datetime, timedelta, timezone
 from app.extensions import db
 from app.utils.logger import logger
 from sqlalchemy.exc import SQLAlchemyError
+from sqlalchemy import or_
 from app.enums.repayment_schedule_status import RepaymentScheduleStatus
 from app.config import settings
 
@@ -122,21 +123,28 @@ class LoanRepaymentSchedule(db.Model):
         except Exception as e:
             logger.error(f"Error fetching active overdue repayment schedules: {e}")
             return []
+    
+
     @classmethod
     def get_overdue_repayment_schedule_with_grace_period(cls, grace_period_days, limit=None):
-        """
-        Get all overdue repayment schedules that are not repaid and beyond the grace period.
-        """
         try:
-            grace_period_date = datetime.now(timezone.utc) - timedelta(days=grace_period_days)
+            now = datetime.now(timezone.utc)
+            grace_period_date = now - timedelta(days=grace_period_days)
+            penal_interval = timedelta(days=settings.PENAL_CHARGE_INTERVAL_DAYS)
+
             return cls.query.filter(
                 cls.due_date < grace_period_date,
-                cls.paid == False
+                cls.paid == False,
+                or_(
+                    cls.last_penal_date == None,  # never penalized before
+                    cls.last_penal_date < now - penal_interval
+                )
             ).order_by(cls.due_date.asc()).limit(limit).all()
+
         except Exception as e:
             logger.error(f"Error fetching overdue repayment schedules with grace period: {e}")
             return []
-        
+            
     @classmethod
     def get_partially_paid_overdue_repayment_schedule(cls):
         """
@@ -300,22 +308,26 @@ class LoanRepaymentSchedule(db.Model):
             db.session.rollback()
             logger.error(f"Error applying repayment for schedule {schedule_id}: {e}")
             raise
+    from decimal import Decimal
+
     @classmethod
     def apply_penal_to_schedule(cls, schedule_id, penal_amount):
 
         schedule = cls.query.get(schedule_id)
 
         now = datetime.now(timezone.utc)
+        penal_amount = Decimal(str(penal_amount))
+
+        current_penal = Decimal(str(schedule.penal_charge)) if schedule.penal_charge else Decimal("0")
 
         schedule.penal_count = (schedule.penal_count or 0) + 1
-        schedule.penal_charge = (schedule.penal_charge or 0) + penal_amount
+        schedule.penal_charge = current_penal + penal_amount
         schedule.last_penal_date = now
         schedule.due_process_date = now
         schedule.updated_at = now
 
         db.session.commit()
-            
-        
+    # Calculate penal charge
     @classmethod
     def calculate_penal_charge(cls, schedule):