Summon in district for default in PMREGP loan

Dear sir, My bank Punjab national bank has issued a summon through the district legal service authority court for default of my bank loans that I have taken more than 7 years back.It is an unsecured loan for unemployed people under the Prime Minister's schemes. It has a subsidy of 25% from the central government, Rs.75000 as self contribution and also subsidy from IIE Institute where I went through training and some other institutes also that are supposed to go to my account in case I don't repay the amount.There was no repayment penalties as far as I was informed before taking the said loan and no mortgage or guarantor needed.It was also clearly written in the KVIC booklet issued for PMEGP loan that incase of default it will be taken as business went bad.The time period for repayment was 3-7 years.I cannot repay the loan back now since I am facing a lot of financial problems. How do I deal with this case? Is it a criminal charge againts me?It is written in the summon letter "loan account settlement can be effected on your appearance in the court." What does that mean? Thanking you.