When you take a Home equity loan you are borrowing the equity of your home, which is the value of the mortgage that you have already paid off. This equity is available to home owners to use as they want to. The loan was originally designed for home renovations, but there is no check on the borrower by the lender to see what the money is used for.
The banks and money lending agencies are keen on lending this money to home owners as they make huge profits from the interest and loan charges. They are at very little risk of losing their money as these loans are secured against the borrowers