Business Loan recovery

I had taken a loan from a private Lender and given it to my Friend's Brother-in-law who wanted to start a business, which he owns a Departmental Store with stockists of soap, oil & biscuits. The overall loan amount was 12.5 lakhs for which they had paid 6 lakhs and rest needs to be paid but they are delaying heavily i.e. backlog of loan interest dues since August month. Since I have taken the loan from Lender, there is a huge pressure but the Borrowers/Guarantor are not responding and behaving differently when we ask for settlement as they agreed to settle few lakhs in 3 months but crossed nearly 10 months. Borrower : My friend's Brother in law and My Friend's Sister Guarantor : My Friend Collateral : Promissory Note, Cheque of Borrower and Cheque of Guarantor They challenge that if I go legal, I won't get any money. I wanted to pull my Friend who is a Guarantor and he is having potential to settle immediately as he runs a big Hardware Store and own a house worth 3 crores. My Friends' brother-in-law & his wife don't have any property but living lavishly and may have a share of that house which is common for 3. Please advise on how to deal with this as I had already got a CSR from local Police Station and bit worried on moving further to Legal as everyone says going Legal will not help.