Can loneliness make people depressed and medication is required ?

Usually not: Other diversions can help maintain mood, particularly if regular sunlight or bright light exposure and positive activities to maintain mood. If it does not succeed, no shame in seeking professional help.

Yes and Viceversa: Both situations, loneliness and depression, might be associated or not. Depressed people tends to isolate, withdraw from social situations, retreat to their own, and become lonely. Lonely people might become depressed, thus there is an indication for psychiatric treatment.