A line of credit is different from a loan in that a loan is a fixed sum of money repaid over a fixed term (period of time), and a line of credit is a revolving account a creditor can borrow against, withdrawing funds up to the maximum amount of the line of credit, and paying-down the line of credit at any time, with the balance fluctuating over time. Thus, a line of credit is more similar to a credit card account, but is usually provided by a local bank based on the debtor’s personal or business relationship with the bank.

In Georgia, as in other states, a line of credit and a loan are distinct financial products. A loan is a lump sum of money that is borrowed and meant to be repaid over a set period, with a fixed or variable interest rate, and typically with a regular payment schedule. In contrast, a line of credit is a flexible borrowing option where the borrower is approved for a maximum amount and can draw funds up to that limit as needed. The borrower can then repay the borrowed amount over time, often with the flexibility to borrow again up to the limit without a new application process. This makes a line of credit similar to a credit card, where the available credit replenishes as payments are made. In Georgia, lines of credit are often provided by local banks and may be secured or unsecured, with terms varying based on the borrower's relationship with the bank and other factors. The specific regulations governing lines of credit and loans in Georgia would be outlined in the state's statutes and the federal Truth in Lending Act (TILA), which requires lenders to disclose credit terms to consumers in a clear manner.