The 21-year-old, who has made only four appearances for the Premier League club this season, admits that he could not turn down the opportunity to join a top Championship side.
Richards told the club's official website: "Swansea were happy to let me go out on loan and it was a great opportunity for me.
"It's a brilliant club to be coming into, sitting in the top six of the Championship.
"As a player you want to be fighting for a place in the Premier League and hopefully I can play my part in the club getting there."
Richards made his full international debut for Wales last summer.