What is a home equity line of credit? A home equity line of credit is a personal loan in which the lender agrees to lend at a certain amount over an agreed period, usually at a fixed rate, where the secured collateral is the borrower's home. The value of the home does not affect the value of the loan, so it is similar in concept to other personal loans that have a variable interest rate. However, in this case, the equity in the property is used as collateral for the loan. In some cases, the HELOC is used to avoid ...