The no form of the interface command typically removes the entry, but all entity associations must be shut down or deleted before an interface can be deleted.
Before loop-back IP interface can be deleted, it must first be administratively disabled with the shutdown command.
After the interface has been shut down, it can then be deleted with the no interface command.
config>router
no interface ip-int-name
config>router# interface test-interface
config>router>if# shutdown
config>router>if# exit
config>router# no interface test-interface
config>router#