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 Oklahoma, as in other states, a line of credit and a loan are distinct financial products regulated by different statutes and regulations. A loan in Oklahoma is typically a fixed amount of money that is borrowed and must be repaid over a set period, with interest, according to the terms agreed upon in the loan agreement. This is governed by state laws pertaining to lending, such as the Oklahoma Uniform Consumer Credit Code, and federal laws like the Truth in Lending Act, which requires clear disclosure of loan terms and costs. On the other hand, a line of credit is a revolving account that allows the borrower to draw funds up to a certain limit, repay them, and borrow again. It offers more flexibility as the balance can go up or down depending on the borrower's needs and repayments. Lines of credit are often secured by collateral and can be offered by banks based on personal or business relationships. They are subject to state laws regarding banking and credit, as well as federal regulations like the Equal Credit Opportunity Act, which ensures fair access to credit. Both financial products are subject to oversight by the Oklahoma State Banking Department and the Consumer Financial Protection Bureau at the federal level.