Penal % represents percentage or ratio used to assess penal % in financial, collateral, or facility analysis. It helps compare the borrower against policy norms, peer benchmarks, and historical trends. Define numerator, denominator, period, and acceptable threshold. In underwriting, it provides business and banking context that supports facility structuring, risk assessment and credit-decision documentation. It helps convert raw borrower information into a clear credit narrative, especially when the relationship involves multiple facilities, lenders or business activities. For example, repeated penal charges may indicate limit irregularity, delayed interest servicing or failure to comply with facility terms. It matters because the same borrower can look different depending on banking arrangement, transaction behaviour, documentation quality and business context. The common caution is to document the source, date, assumptions and credit impact so the term does not become a vague narrative label.