Clarification: The city of Loja is actually a geographically large metropolis that runs up and down the sides of mountains. As the 9th largest city (by population) in the entire country and the 4th largest city in the high mountains of Ecuador, and with a population of 200,000 people (which in a country of only 16 million IS a medium size city), there is not a lot about Loja that is small-townish. And perhaps more importantly, the sheer geographic size of the city, which is easily more than 50 square miles, should quash any ideas of Loja as a village.
Now, definitions in Ecuador can be tricky for North Americans as, for example, we are used to legal "city limits" and very clear boundaries of what belongs to what. From conversations with many locals here and with government officials, what I have gleaned is that the word "ciudad" (city) is more of an abstract concept here. So what one person says is the city, the next will say is not. It appears that the wealthier Lojanos (Lojanos are native Ecuadorians from Loja) tend to think of the city as the downtown area and the urban part right around that. Wealthier people tend to live more in this area as the prices are quite a bit higher. Some even refer to other parts of Loja as the "campo" where the "campesinos" live. However, if you go to the more rural parts of the city and ask people where you are, they will tell you that you are in the city of Loja and furthermore that they are getting all the Loja city services where they live (water, sewer, electric, phone lines, internet, trash and compost pick-up, etc.). In addition, you can walk into government offices to ask where the city limits are and they will show you a very large area on a map.
From a more technical or legal perspective, it is tricky to find the exact boundary. The "municipio" (municipality) of Loja is much bigger than the city, extending quite a ways south. The same is true of the "cantón" (roughly equivalent to a county). Probably the most reliable source is the official city maps which show the “límite urbano” (urban boundaries) because this does appear to be a legally defined area. However the urban boundaries are expanding all the time as there is new development all around the edges of the city. There is some process by which those who are building beyond the city limit can become part of the the city, thus paving the way for the new construction to receive all the city services. So that urban limit is expanding every year.
Most people who travel through the city and even some who have lived in Loja for a period of time have no idea of the vastness of this place. Most seem to believe that only the small downtown area and a bit of the urban part around that are the city. Thus, Loja is much more expansive than what is perceived by most of the foreigners.
The city of Loja really is a paradise for people who love to go hiking but need or want to live in a city for whatever reason (work, school, family, etc.) I have hiked for hundreds of hours inside the city and have only seen a small portion of the total. There are gorgeous mountain vistas all over, incredible cloud formations, a wide variety of birds as well as flowers and plants growing naturally, pretty walks by the rivers, amazing sunsets, etc. But most of the hiking is up and down the mountains, so be prepared to use your hill climbing legs if you go. Also, most of the roads outside the urban center are dirt, so when the cars and buses go by, the normally clean air can get rather dusty for a minute.
Because the city is so huge, it is difficult to see it without a private car complete with a driver who knows where to go. There are city bus routes that go way up into the mountains on all sides, so you can see some of Loja just by using public transportation (although it can be quite crowded). It is possible to live in the city without a car, even away from the urban parts as long as you are close to a bus route (and there are many of them). However, it is much easier to get around with your own car and it certainly gives you the freedom to see so much more of the city. You can also call for a taxi (and taxi apps on cellphones have become popular, making the process much easier and safer). Some people have made friends with a taxi driver who lives in their neighborhood and have had good luck getting comfortable rides that way.
Loja is a big enough city that it has the city things like a movie theater, a Supermaxi grocery store, plenty of banks, internet which is getting better all the time, medical facilities, and shops of many varieties. It lacks what the big three Ecuadorian cities have (Guayaquil, Quito and Cuenca) in terms of missing variety in restaurants, having no large shopping malls (although Loja opened its first mall in 2015, it is quite small compared to the malls in the big 3 cities), and not having public activities going on 7 days a week.
Loja is also a big enough city that most Lojanos don't know each other unless they happened to go to school together, work together, or have a family connection or common friends. People on the street do not expect to make eye contact and are not used to saying hello to strangers. (I say hello to everyone who will make eye contact with me and most are not opposed to saying hello back, they are just not accustomed to it.) It's also big enough that there is crime here. So you have to have your street smarts about you when you go out. To read more about crime in Loja, click here.
In conclusion, I hope you can see, dear reader, that Loja is NOT a small town; it is in fact a medium size city. A very beautiful and special place, but a city nonetheless.