Ajose signed for the Posh in the summer in a deal thought to be worth around £300,000, but he has been restricted to just one start this season because of a hamstring injury.
The youngster reunites with Scunthorpe boss Alan Knill who he played under during a productive spell with Bury last season. Knill was happy to link up with the striker for a second spell.
"We've bought him in to do the same things he did at Bury. He'll go back to Peterborough a more confident player. He had some other options, but he really wanted to come to us. He trusts us with his talent and we'll try our best to bring that out."
Ajose said he was confident of his ability to shine with the Iron as he did at Bury, "To come here and work with the gaffer again, and with some good players, I think it's going to be a good experience for me. I know the way he [Alan Knill] plays so I'm confident I should be able to quickly settle in."
The 19 year old started his career with Manchester United, joining Bury on loan in September 2010. He scored thirteen goals in twenty eight games for the Shakers.
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