A line of credit (LOC) is a type of loan where rather than borrowing a lump sum to repay in instalments over time, you can borrow and repay smaller sums as you choose, up to a maximum limit. This maximum limit is often based on the value of an asset you use as collateral to secure the loan.
A home equity line of credit (HELOC) uses the value of a property as security for your loan. The maximum credit limit may be based on your equity in the property – the value of the home minus the outstanding mortgage.