In most cases, failing a subject will not stop loan disbursement, but it depends on the bank's policy. Some banks require students to maintain a minimum academic performance, while others may continue to disburse the loan if you are still enrolled in the course. You should inform the bank and explain your situation. If you can demonstrate that you are progressing in your course, the bank is likely to disburse the loan for the next semester. Be sure to check the specific terms of your loan agreement.