Personal loan

Hi all, I availed a personal loan two year back in feb 2013,which I defaulted after paying 6 emi because I lost my job.after that I couldn't continue because of some circumstances .I want to pay the amount but it will take another 5-6 month to get a new job.I received this letter on 14 -07-2015.what does it mean? What action they will can take? Should I reply to this mail. Sub: Demand for Payment of Outstanding Due on the above referred Loan A/c Madam/sir, Under instructions and on behalf of our client , having its registered office.I hereby serve you with the following notice as under :- 1. That our client is banking company within the meaning of Banking Regulations Act and is engaged in the business of Banking, Personal Finance, Hire & Purchase of Vehicle and Financing of Vehicles etc. 2. That you had availed Finance Facilities from our client under the Loan Agreement No.Under its PERSONAL LOAN Scheme and you, as per the agreement, had to repay the said amount in equal monthly installment but you are very irregular in making the repayment of equal monthly installment to our client. That the total outstanding is Rs. 340541.7/- of which you have to make the payment to my client as per the terms and conditions of the Loan Agreement bearing No. 3. . That you had availed and utilized the above said facility for your benefit, however, you failed to adhere to the terms and conditions of the Loan agreement executed between you and my above said client by not making the payment/ repayment of the outstanding/ loan amount in time and the same was not paid despite repeated, request, reminder and personal visit made by my client’s officials/ executives. 4. That my above said client had on several occasions attempted to contact you and remind you of your outstanding on the above said loan A/c and the payment due dates, but, you did not intend to co-operate with my client and refrained from attending my client’s calls and further refused to meet up with my client. 5. . That the total amount outstanding on account of your above said loan facility with my client is Rs. 340541.7/- as on 14.07.2015. 6. . That you have willfully defaulted in making payment/ repayment towards above said loan facility availed by you and you have demonstrated an intention to defraud and cheat my client which is evident from your above conduct. You are also fully aware of the fact that my client has been put to loss towards the amount outstanding unpaid by you on account of the above said loan facility. You have thereby caused a wrongful loss to my client and your act amounts to Cheating as contemplated under Sec.420 of IPC and Criminal Breach of Trust, punishable under Sec.406 of the Indian Penal Code. Therefore, I on behalf of my above said client hereby call upon you forthwith to pay the total outstanding dues of Rs. 340541.7/- , to my client immediately from the date of receipt of this notice failing which my client would be constrained to initiate appropriate legal proceedings against you without further reminder to you. Please be informed that such legal proceedings would necessarily contem¬plate, civil proceedings for recovery of money, together with proceedings for attachment of your movable and immovable properties, direction to provide appropriate guarantee/surety/security, filing for insolvency etc., as deemed applicable and necessary, and/or criminal prosecution for breach of trust, fraud and cheating, as deemed applicable and necessary, at your costs, risks and consequences. In case you fail to respond to this notice, my client is further constrained to share the status of payment of all Loan facilities, including the above said loan facility availed by you, with CIBIL (Credit Information Bureau of India Ltd.), a repository database set up by the Reserve Bank of India. Non payment by the borrower makes him delinquent and Borrower’s CIBIL status may have adverse impact resulting into low CIBIL score. In event you seek any clarific