Hi @vinz_Maheshwari,
There are two scenarios -
Scenario A - The Education loan is not yet active and there is no disbursement.
In this case, if the student has failed any subject and there is a backlog pending, the SBI will give you a conditional sanction stating that the loan amount will be disbursed only after the student shares the mark sheet with all clear status. It means that you will have to clear your backlog to get the loan amount disbursed.
Scenario B - The Education loan is active and the first disbursement has taken place.
In this case, if the student gets a backlog during the course, they have to give an explanation along with the demand letter for further disbursement. The bank will also ask for the mark sheet of the previous semester.
I hope this answers your doubt. If not, then please elaborate on your education loan a bit, so that I can provide an answer specific to your situation.