Disabling Loop backcheck is commonly used practice in lower envirnoment i.e Dev and QA but in Production it is depend.
Windows Server 2003 SP1 introduced a loopback security check. This
feature is obviously also present in Windows Server 2008. The feature
prevents access to a web application using a fully qualified domain
name (FQDN) if an attempt to access it takes place from a machine that
hosts that application. The end result is a 401.1 Access Denied from
the web server and a logon failure in the event log.
Read this blog to completely understand the issue
You can disable it using the following method:
To set the DisableLoopbackCheck registry key, follow these steps:
- Set the DisableStrictNameChecking registry entry to 1. For more
information about how to do this, click the following article number
to view the article in the Microsoft Knowledge Base: 281308
Connecting to SMB share on a Windows 2000-based computer or a
Windows Server 2003-based computer may not work with an alias name
- Click Start, click Run, type regedit, and then click OK.
- In Registry Editor, locate and then click the following registry
- Right-click Lsa, point to New, and then click DWORD Value.
- Type DisableLoopbackCheck, and then press ENTER.
- Right-click DisableLoopbackCheck, and then click Modify.
- In the Value data box, type 1, and then click OK.
- Quit Registry Editor, and then restart your computer.
Read more about above steps over here