Yes, you can create your own class types in C. From the C API a Python type/class is an instance of the PyTypeObject structure filled in appropriately for your type. The whole procedure for doing this is outlined nicely in the following tutorial:
https://docs.python.org/2/extending/newtypes.html
This will walk you through defining the initial core type and then adding data and methods to the type/class. At first it may seem like an awful lot of work just to get a class implemented in C, but once you do it a few times and get comfortable with it, it's really not so bad.
Here is a bare bones implementation of the Test class you define in your question.
#include <Python.h>
#include "structmember.h"
typedef struct {
    PyObject_HEAD
    /* Your internal 'loc' data. */
    int loc;
} Test;
static void
MyTest_dealloc(Test* self)
{
    self->ob_type->tp_free((PyObject*)self);
}
static PyObject *
Test_new(PyTypeObject *type, PyObject *args, PyObject *kwds)
{
    Test *self;
    self = (Test *)type->tp_alloc(type, 0);
    self->loc = 0;
    return (PyObject *)self;
}
static int
Test_init(Test *self, PyObject *args, PyObject *kwds)
{
    if (! PyArg_ParseTuple(args, "i", &self->loc))
        return -1;
    return 0;
}
static PyMemberDef Test_members[] = {
    {"loc", T_INT, offsetof(Test, loc), 0, "mytestobj loc"},
    {NULL}  /* Sentinel */
};
static PyObject *
Test_foo(Test* self, PyObject *args)
{
    int data;
    PyObject *result;
    if (! PyArg_ParseTuple(args, "i", &data)) {
        return NULL;
    }
    /* We'll just return data + loc as our result. */
    result = Py_BuildValue("i", data + self->loc);
    return result;
}
static PyMethodDef Test_methods[] = {
    {"foo", (PyCFunction)Test_foo, METH_VARARGS,
     "Return input parameter added to 'loc' argument from init.",
    },
    {NULL}  /* Sentinel */
};
static PyTypeObject mytest_MyTestType = {
    PyObject_HEAD_INIT(NULL)
    0,                         /*ob_size*/
    "mytest.MyTest",             /*tp_name*/
    sizeof(Test), /*tp_basicsize*/
    0,                         /*tp_itemsize*/
    (destructor)MyTest_dealloc,/*tp_dealloc*/
    0,                         /*tp_print*/
    0,                         /*tp_getattr*/
    0,                         /*tp_setattr*/
    0,                         /*tp_compare*/
    0,                         /*tp_repr*/
    0,                         /*tp_as_number*/
    0,                         /*tp_as_sequence*/
    0,                         /*tp_as_mapping*/
    0,                         /*tp_hash */
    0,                         /*tp_call*/
    0,                         /*tp_str*/
    0,                         /*tp_getattro*/
    0,                         /*tp_setattro*/
    0,                         /*tp_as_buffer*/
    Py_TPFLAGS_DEFAULT | Py_TPFLAGS_BASETYPE,/*tp_flags*/
    "MyTest objects",          /* tp_doc */
    0,                         /* tp_traverse */
    0,                         /* tp_clear */
    0,                         /* tp_richcompare */
    0,                         /* tp_weaklistoffset */
    0,                         /* tp_iter */
    0,                         /* tp_iternext */
    Test_methods,      /* tp_methods */
    Test_members,      /* tp_members */
    0,                         /* tp_getset */
    0,                         /* tp_base */
    0,                         /* tp_dict */
    0,                         /* tp_descr_get */
    0,                         /* tp_descr_set */
    0,                         /* tp_dictoffset */
    (initproc)Test_init,/* tp_init */
    0,                         /* tp_alloc */
    Test_new,                 /* tp_new */
};
static PyMethodDef mytest_methods[] = {
    {NULL}  /* Sentinel */
};
#ifndef PyMODINIT_FUNC  /* declarations for DLL import/export */
#define PyMODINIT_FUNC void
#endif
PyMODINIT_FUNC
initmytest(void)
{
    PyObject* m;
    if (PyType_Ready(&mytest_MyTestType) < 0)
        return;
    m = Py_InitModule3("mytest", mytest_methods,
                       "Example module that creates an extension type.");
    Py_INCREF(&mytest_MyTestType);
    PyModule_AddObject(m, "Test", (PyObject *)&mytest_MyTestType);
}
And its usage from the Python interpreter:
>>> from mytest import Test
>>> t = Test(5)
>>> t.foo(10)
15