The 23-year-old moves to the Premier League just six months after his £13m switch from Feyenoord to the Principality.
Kongolo, brother of Doncaster Rovers’ loanee Rodney, can play at left-back or centre-half and will bring some much needed competition to the Terriers’ back-line.
The Dutch international is eligible to feature in the weekend’s FA Cup clash with Bolton Wanderers.
David Wagner said: “Terence is a top player who we’ve followed from his time at Feyenoord. His big summer move to Monaco put him out of our reach at the time, but we’re delighted we can bring him in on loan now.
“He is a high-quality young centre back and will provide us with a great option for the rest of the Premier League season. With Michael Hefele and Jon Gorenc Stanković returning from long-term injuries, it was important to have this.
“Terence has qualities that will really suit our style of play. He’s athletic and mobile and he plays on the front foot in the way he defends and uses the ball. I’m excited to work with him during the course of the season.”