unable to repay personal loan

Discuss with financier for one time settlement and get rid of your liability, there is no (legal) escape.

Yes, visit the Branch that gave you the loan and I form your present position candidly. Give them how you propose to repay with a one time settlement or in a phsed manner. Your proposal should be realistic. Banks normally permit rephasing the loan or one time settlement when they are satisfied about the condition and sincerety of the borrower.

File a grievance petition, explaining all your difficulties, and request the bank for rephasing the loan within a holiday period of 6 months.  Wait for a month and submit the same petition to superior authorities of the Bank.  They may consider your case for rephasing if your earlier credit discipline is proper.  But, all this ruins your credit rating and credibility.  You can not escape from legitimate liability.  Try for a permanent solution, as a personal loan may be a small amount when compared with future loan requirements like Housing loans etc.  Please do not get your credit discipline ruined with such a small default amount.

You could be in trouble if you had given blank cheques. Else, the Bank need to take recourse to the due process in realizing the loans.

There is also the possibility that you may face harassment from the so-called recovery agents.