It depends on various aspect – mainly the loan amount you require. You need to be smart to choose the right loan for your business. In case your required loan amount is higher you can opt for a collateral loan if you have a collateral to pledge and are confident that you can repay the same. In most cases, you will be eligible for higher loan amount as compared to the collateral-free loan. However, value of the collateral dictates the loan amount. In case, the required loan amount is lower, and you are eligible for a non-collateral business loan, you can opt for the same.