Hi Michael,

There are at least two that I can think of (that we use all the time):

1. For routing protocols (eg. OSPF, BGP). Best practise is to use a loopback 
address as the router-id for your routing protocols. If you're running dynamic 
routing between PE-CE (within a vrf) then you'll need a loopback in the vrf for 
this.

2. L2TP/PPP termination. If you're terminating a PPP session in a vrf then 
you'll want a loopback IP address in the vrf to facilitate this (ip unnumbered 
loopback x).


Why do you ask the question ?


regards,
Tony.








>________________________________
> From: Michael Sprouffske <[email protected]>
>To: "[email protected]" <[email protected]> 
>Sent: Tuesday, 24 July 2012 8:25 AM
>Subject: [c-nsp] Customer VRF on Loopback
> 
>I'm having a hard time understanding exactly why you need to create a loopback 
>interface and associate that with a customer vrf. Could someone please list 
>out a couple reasons and examples why this is used and then its not used so I 
>have a better understanding.
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