The Wales Under-21 international will initially stay with the Red Devils until March 31 and will be in the squad for Saturday's trip to Bury.
Reds boss Richie Barker is confident Taylor will bring something different to his midfield.
He told the club's official website: "What appeals to us is his versatility.
"He can play in any number of positions including up front or just behind the striker and that is good for us at the moment because we are a little bit light on numbers and have a lot of games coming up.
"I have just spoken to him and he is really excited about the next month. He will get opportunities and he wants to impress."
The 21-year-old has had previous loan spells at Aldershot, Exeter and Cheltenham.
