Peters told ShrewsWeb: ""He's not getting many chances here in the first team at present so a move out on loan will do him good.
"We'll see how does in the Conference and get a few games under his belt to toughen him up a bit."
19-year-old Stephens, who progressed through Town's youth ranks, has made two starts for the club and appeared as a sub three times. He has previously played on loan at Caersws.
Redditch are currently eighth in the Conference North, eight points off the top spot.
*It's a loan not a rental, but rent sounded better.