The 25-year-old former AFC Fylde player has scored 29 goals and assisted 19 this season and moves to the League One club on a three-year deal.
Lloyd has been working for a waste disposal company alongside football.
"I believe in my ability and believe this is a level I should be playing at. I wish it was 1 July already," he told BBC Radio Cambridgeshire.
"To be brutally honest it was a very easy decision to join Peterborough. Once I spoke with the gaffer about the way he wants to play, it's very similar to what I've been playing.
"I think I'll fit in really well and he thinks I'll fit in really well. Everyone knows Peterborough United's track record and what they've done for lads from non-league.
"First and foremost, this season's about working hard for the club and if the club do well, the lads will do well."
Lloyd is Posh's second signing of the summer, and the second from non-league after the arrival of Ricky Miller from National League side Dover.
Find all the latest football transfers on our dedicated page.

Industry magazine What Car? says prices of VW models have not collapsed as might have been expected.
VW cars which are three years old, or have done 36,000 miles, are typically worth 42.21% of their original value, the magazine said.
That is 2.7% lower than in September 2015, just before the scandal broke.
However, across the industry as a whole, second hand values have fallen by 2% over the same timeframe, suggesting that Volkswagens have performed only slightly worse than the average car on the market.
"I'm sure there are motorists out there who were rubbing their hands in glee at the thought of used VW prices falling off a cliff because of the emissions debacle," said What Car? editor Steve Huntingford.
"That simply hasn't come to pass, however, and while the VW story continues to rumble on a year after the story first came to light, the Golf and Polo are still among the most popular new cars in the UK."
The German car-maker admitted on 16 September last year that software had switched diesel engines to a "clean mode" whenever they were tested for emissions.
VW has recalled 200,000 cars in the UK as a result.
But while it is offering to repair them, it is not offering owners compensation.
VW drivers in the US have been offered up to $10,000 each to make up for the deception.
The What Car? research suggested that cars made by VW under the Audi brand experienced a similar drop in value to VW-badged cars over the past year.
It also found that the value of second hand Seat and Skoda models, also made by the VW group, fell by less than 0.5% over the 12-month period.

Ian Toothill said he believes he is the first cancer patient to scale the world's highest mountain.
The Sheffield Wednesday fan planted a flag of rivals Sheffield United at the summit for charity.
The 47-year-old personal trainer, who reached the summit on Monday, has raised almost £31,500 ($40,600) for Macmillan.
He tweeted: "Nothing to see here, just some cancer dude [Sheffield Wednesday] fan on the summit of Everest with a @SUFC_tweets flag."
Live updates and this and other stories from Yorkshire
Mr Toothill, originally from Sheffield, lives in Willesden Green in London and has climbed in the Himalayas.
He was diagnosed with bowel cancer in June 2015 and told in early 2016 that he had beaten the disease, but later found out it had returned.
He said he has been told he has "just several months left to live".
Speaking to BBC Radio Sheffield in February, he said: "I'm determined to prove anything is possible."
He reached the top of the North Col route on 16 May and the summit of Everest on 5 June.
Miss NJP tweeted: "What an amazing achievement and a wonderful moment for @IanToothill. Feeling emotional. So glad you made it to the top #climbingforcancer".
The Sheffield Wednesday fan planted the rival Sheffield United flag at the summit after a friend donated £1,000.
Mr Toothill was accompanied part-way of the climb by Leslie Binns, from Rotherham, who abandoned his climb to the summit after saving the life of a fellow climber last June.
His fundraising bid raised almost £31,500, beating the target of £29,100.
Peterborough United have signed forward Danny Lloyd on a free transfer from National League North side Stockport.
[NEXT_CONCEPT]
Second hand Volkswagens appear to be holding their value well, a motoring magazine says, despite the emissions scandal which emerged a year ago.
[NEXT_CONCEPT]
A terminal cancer patient who has been told he has just months to live has conquered Mount Everest.