The 20-year-old has moved to the Southern League Premier Division Central side after joining Coventry from Eastbourne Town during the summer.
The temporary switch is intended to provide Holman with regular first-team football and an opportunity to continue his development away from the Under-21 environment.
Banbury have brought in the defender as they look to strengthen their options for the coming weeks. He made his debut in a 1-0 defeat against Leamington on November 7, with the initial loan agreement running for 28 days.
The move gives Holman an early opportunity to build experience in the men's game following his arrival at the Coventry Building Society Arena.
Coventry City confirmed the agreement this week and wished the defender well during his time with the Puritans.