Understanding of Below issue in defaulting personal loan.

I had taken an unsecured personal loan of 3 Lacs from a bank.2 years ago. I was paying my EMIs when I was working but past 6 months I have not been able to pay my EMIs due to an unfortunate loss of my job. then I started a business but it has not been going well and I am not making any profit. I tried asking the bank to reduce my EMI amount so that I can continue my EMIs but the bank refused to reduce the EMIs and asking me settle the amount in full in 3 installments of rupees 1.20L as I defaulted. I am unable to pay this huge amount to the bank in 3 installments as I have not been making any money. In the meantime, the bank has taken legal actions against me and I have been receiving notice from Sole Arbitrator from another state of India. I have just received a final notice from them for hearing. I am not able to understand what to do. I do not have money to go to another state for hearing and also I do not have money to hire a lawyer. Please suggest what can I do? and does it mean, I can be jailed if I do not show up in court? and why I have been getting notice from arbitrator when it is a cibil case under my knowledge? Please help me getting the answers.