How to write a systemd unit to manage the loopback interface?

Solution Verified - Updated -

Issue

  • How to write a systemd unit to manage the loopback interface?
  • NetworkManager does not manage lo (the loopback interface) but we want to make some changes to it without using the network initscript or old network service. How do we do this?
  • How to set loopback MTU to a different value on boot?

Environment

  • Red Hat Enterprise Linux 9
  • Red Hat Enterprise Linux 8
  • Red Hat Enterprise Linux 7
  • Changes to lo loopback interface
  • systemd with no network initscripts

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