A Home Equity Line of Credit (HELOC) is a flexible line of credit that you can draw from as needed, up to a certain limit. On the other hand, a home equity loan is a one-time lump sum loan with a fixed interest rate and a repayment period. The main difference between these two types of loans is the way in which you can access and use the funds. With a HELOC, you can withdraw funds as needed, while with a home equity loan, you receive the funds all at once.