Will my mother go to jail if she cannot repay back a loan from a loan shark?

Hi, in 2009 my mother took a loan from a non license Loan shark which is a woman. The loan is 2 lakh, they agreed that my mother should pay every month a suit of 16500, my mother never failed to pay her suit, the problem is this woman has a notorious reputation of violence, even if my mother is one or two days late to pay the suit, this woman would harass her and even threatens to kill or harm her just because my mother was only two days late to pay the suit. Last month this lady came to our shop and harass my sister and verbally abuse her, she almost have succeed in harming her but thank god she was not harm, the woman started throwing stuff around in the shop like furnitures here and there. SO my mother took the matter to the police, my mother told the situation to the police, at the police station also the lady keep on harassing my mother and sister, so the decided to put on writing an agreement that my mother should repay back the loan this month itself on the 30th of december at 10 am sharp at the police station, the lady threatens to put both my mother and sister in jail if she cannot pay her back, we came from a poor background, in our family there are three of us only, none of us had a job, my mother was a tailor and my sister was a beautician, we had tried from every possible source for help but to not avail, we cannot collect the 2 lakh plus 50 thousand interest, my mother had shed blood sweat and tears but its impossible for us, what shall we do, will they go to jail, and do we have a right to bail?