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CCNP Virtualization Practice Question

A network engineer is configuring a Cisco Nexus 9000 switch as a VXLAN Tunnel Endpoint (VTEP). The switch has two loopback interfaces: Loopback0 (10.0.0.1/32) and Loopback1 (10.0.0.2/32). The engineer wants VXLAN traffic to use the loopback interface that is also used for BGP EVPN peering. Which command should be used to specify the source interface for the VXLAN tunnels?

⚠ Common exam trap

Many exam-takers confuse the global 'feature nv overlay' command with the interface-level source-interface configuration, or assuming the source interface should be configured on the loopback rather than under the NVE interface.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

✓

interface nve1 source-interface loopback1

The correct configuration is to specify the source interface under the NVE interface using 'source-interface loopback1'. This binds the VTEP to the same loopback used for BGP EVPN peering, ensuring that the tunnel source address is reachable and consistent with the control plane. Using a different loopback could cause routing inconsistencies and is not recommended when the same loopback is already used for EVPN peering.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • ✓

    interface nve1 source-interface loopback1

    Why this is correct

    The 'source-interface loopback1' command under the NVE interface configuration sets Loopback1 as the source for all VXLAN encapsulated traffic. Since Loopback1 is also used for BGP EVPN peering, this ensures consistent reachability and avoids asymmetric routing. This is the correct way to bind the VTEP source to a specific loopback, which is a common best practice in VXLAN EVPN deployments.

  • ✗

    interface loopback1 vxlan source-interface

    Why it's wrong here

    This command is not valid Cisco NX-OS syntax. VXLAN source interface configuration is done under the NVE interface, not under the loopback interface. Attempting to configure it on the loopback would result in an error, and the VTEP would not have a designated source address, preventing VXLAN tunnels from being established.

  • ✗

    interface nve1 source-interface loopback0

    Why it's wrong here

    While Loopback0 could be used, the scenario specifies that the loopback used for BGP EVPN peering is Loopback1. Using Loopback0 would separate the VTEP source from the control-plane peering address, potentially causing suboptimal forwarding or requiring additional routing configuration. The question asks for the interface that is also used for BGP EVPN peering, so Loopback1 is the correct choice.

  • ✗

    feature nv overlay source-interface loopback1

    Why it's wrong here

    The 'feature nv overlay' command is used to enable the NVE feature globally, but it does not accept a source-interface parameter. The source interface must be configured under the NVE interface itself. Placing it under the global feature command is syntactically invalid and would not configure the VTEP source correctly.

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Written and reviewed by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

Last reviewed September 2026 · checked against the official Cisco exam blueprint

This 350-401 practice question is part of Courseiva's free Cisco certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the 350-401 exam.