Well, the Doctor has(had?) a granddaughter. We saw various Time Lords as children. The Doctor has made references to both his mother and father. So the answer would appear to be "No".
However, in the Virgin Books, Time Lords are indeed sterile. New Time Lords are not born, but woven from Looms. However, the "Sterile Time Lords" and "Looms" exist only in the Virgin Books. In every other medium, there have been references to Time Lords being born, being children, growing up, having children etc.