Short-term and payday loan provider Ferratum UK has been granted authorisation by the Financial Conduct Authority (FCA).

Ferratum offers a service for existing customers to apply for a short-term loan via a text message.

The firm provides customers with short term loans between £50 and £500, with a range of repayment options available.

Tony Gundersen, UK country manager for Ferratum Group, said: “Receiving authorisation from the FCA further recognises that Ferratum is a responsible lender that puts customers at the very centre of our business. With this decision, the FCA is sending a clear message to our customers, partners and stakeholders that we run a compliant business where customers are consistently treated fairly.

“Achieving FCA authorisation is a key milestone for us in 2016, as it gives us the opportunity to continue with our innovation plans, including the launch of a new instalment product that has been developed based on customer research and feedback.”