Loeb was born in Haguenau. He grew up in Oberhoffen-sur-Moder wanting to become a gymnast/acrobat, but instead turned his interests to racing as an adult. In 1998, he started entering events in the French Citroën Saxo Trophy series, winning the title in 1999. Guy Fréquelin, Citroën Sport's Team Principal, would serve as Loeb's mentor as he entered the Junior World Rally Championship, which he conquered in 2001. During this time, he was also released for participation in various World Rally Championship events in the Citroën Xsara, where in Sanremo he surprisingly hounded Peugeot tarmac wizard and eventual victor Gilles Panizzi to the finish.2002 would be Loeb's first full-season with Citroën. He won the Rally Germany, the first event of his flourishing career, although on road he also won the season-opening Rally Monte Carlo. His victory was taken away by a controversial time penalty after the last stage, which gave victory to second placed Tommi Mäkinen. In 2003, Loeb won three WRC events before losing to Petter Solberg in Wales Rally Great Britain and also losing the championship to Solberg by just one point.