It was reported Schalke were keen to include the option of a permanent transfer in the deal but Juve refused, as they consider his long-term future to be in Turin.
Speaking to Schalke's official website, Pjaca revealed he sought advice from Benedikt Howedes, who spent his entire professional career in Gelsenkirchen before joining Juventus earlier this year.
"He had so many positive things to say about the club and the fans here," Pjaca said.
"The coach [Domenico Tedesco] has told me a lot about his playing style and I like that. Now I'm just hoping for as many games as possible."
"We are glad that Marko has decided to join us," said Tedesco of a player who was also linked to Anderlecht.
"Many clubs were interested in him. He brings another quality to our team.
"Marko can be used in a variety of ways. He can play right and left as well as at number eight or in front. He is robust and brings good speed."
Pjaca sustained cruciate knee ligament damage on international duty and only returned in a match for the Primavera side in November. He has not played for Juve's senior side this season.
"Pjaca will be loaned out, he needs to play," Allegri said earlier this week.
"He is a boy who has extraordinary qualities and unfortunately this injury has temporarily stopped his progression.
"So he needs to find a team where he can find continuity to return next year in the best condition."