Vue-loader is a loader module for webpack that allows us to write single file components using the .vue file format. A single file component file has three sections namely template, script and style. The vue-loader module allows webpack to extract and process each section using separate loader modules such as the SASS or SCSS loaders. The setup thus allows us to seamlessly author apps using .vue files.
The vue-loader module also allows static assets to be treated as module dependencies and enables processing using webpack loaders. And it also allows hot reloading during development.