Bannan impressed in Derby's 4-2 Championship defeat against Sheffield United at the weekend, helping himself to a debut goal.
Villa's youth team coach McAndrew was delighted at Bannan's impact and reckons the loan move will play a crucial part in the midfielder's education.
"It is all part of his education, and although they lost the game the reports are that he did very well," he told Villa's website.
"It is important that these young lads can get out on loan if we can do that.
"Barry's done great in youth football and great in reserve football but we need to see if he can play proper men's football. It looks as though he has made a decent start."