On a home equity line of credit (HELOC), the draw period is a fixed time when a member can make withdrawals from the home equity. Once the draw period expires (10 years), the home equity will be converted to a 15-year repayment period.
On a line of credit, the draw period is the fixed time when a borrower can make withdrawals from the account. After the draw period expires, the borrower can renew the credit line or may be required to pay the outstanding balance in full, or over time.
Generally associated with home equity lines of credit, the draw period is the period of time that you can access funds from the line. After the draw period expires, a repayment period generally follows.