The promising youngster makes the move to Molineux from Dijon, with Wolves holding an option to make his move to England permanent should he impress.
He'll link up with the club's under-23 side, with Wolves still on the verge of signing Daniel Podence as their first senior deal this month.
The 19-year-old has made six appearances this season, and can play in a central role in midfield, as well as being effective as a defensive midfielder too.
He admitted his delight to make the move to Wolves.
"I’m very happy to be here." he said.
"Wolves are a great team, they play in the Premier League and for all football players growing up in France, the Premier League is the biggest championship, so I’m very proud to be here.
“I’ve watched some of the Wolves games and there is a way to play here which I like, and although I know coming here is going to be difficult, I want to work hard, learn English football, play as many games as I can, and then we will see what happens."
Wolves sporting director Kevin Thelwell was equally happy to get the deal over the line, admitting that Loiodice was a player the club have tracked for 'some time'.
"Enzo is a French under-20 international who we have been monitoring for some time." he said.
"We are looking forward to him joining the under-23 squad and showing everybody the quality that he has."