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New Member

Can VPN terminate on loopback?

If anyone can give me clue on how to do this I would be greatfull!

Simplified Scenerio: Multiple remote sites with WAN connectivity to main site need VPN encryption over WAN links. Remote sites have 7200VXR with VAM-SAM2+, Main site has 1 6500 with a  SPA-IPSEC-2G. IGP is EIGRP so each site also must use a GRE tunnel.

Complication: Some of the WAN circuits terminate in a different building then the encryption-capable 6500 (Thanks Verizon!). The routed (not switched) connections between the buildings (there are 3 with 2 core routers a piece) are nearly a  full mesh and I would prefer not to configure encryption on every one of the routed interfaces

Desired goal: On the encryption-capable 6500, configure 1 loopback per GRE tunnel. The GRE sources are the serial interface on the WAN router and the site-specific loopback and the tunnel needs to be secured with IPSEC and accelerated with the VPN accelerator card. Avoid lots of encryption commands on the routed links between buildings

I know how to do it if the WAN routers terminate locally on the encryption-capable 6500, but when they are remote and routed the answer appears be non-trivial, at least to me.


Cisco Employee

Re: Can VPN terminate on loopback?

I'm not sure to fully understand your questions, but a tunnel can end on any routed interface, if you set a tunnel with tunnel source {local_loopback} and tunnel destination {remote_loopback} then that'll work.

As far as I understand, you need several tunnels, some with encryption, some without.

What I would advice is using GRE tunnels for unencrypted tunnels and IPSEC Tunnels with VTI (routed) interfaces, so that you can have multiples tunnels, some with encryption, some without.

Here a config sample:

int Lo0

ip add

int tun0

descr unencrypted GRE Tunnel

tunnel mode gre

tunnel source lo0

tunnel dest ! remote router 1


!ipsec vti

crypto ipsec transform-set ts1 esp-aes

crypto ipsec profile pf1

      set transform-set ts1


int tun1

descr encrypted ipsec tunnel

tunnel source lo0 ! can be any interface

tunnel dest ! remote router 2

tunnel mode ipsec ipv4

tunnel protection ipsec profile ts1

More informations here:

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