Author
LoansJagat Team
Read Time
8 Min
18 Jun 2025
Aarti, a 25-year-old professional chef, wanted to launch her beachside restaurant in Goa. She imagined customers enjoying seafood at her restaurant with the ocean view. But dreams need money, and she didn’t have enough. She decided to start small and took a loan of ₹10,000, telling herself, "Chhoti shuruaat, bada dhamaka!"
She began small. From a rental kitchen in Mumbai, she operated her small food business of homemade gourmet food. She spent all her time working on designing perfect recipes. Aarti established her base and earned ₹20,000 from ₹10,000 and kept expanding her business.
She believed in "Paise Se Paisa Banta Hai!" Therefore, she reinvested wisely. With another loan of ₹50,000, she bought smart kitchen appliances which quickened her cooking while increasing her customer reach. She started catering for small events and functions. Motivated by her success, she borrowed ₹1 lakh to start a street food business. She drove to various locations while introducing new dishes to establish her brand.
She focused on establishing her restaurant business above all else. She launched her greatest venture after dedicating 3 years to her work. She secured a loan of ₹5 lakh, rented a prime beachside spot in Goa, and turned it into a classy seafood restaurant. Crowds thronged the place on its first day itself. Her food was loved by locals and tourists, and news spread like wildfire.
In ten years, she had multiple beachfront restaurants that prospered. Beginning with nothing, she built a ₹10 crore empire. People talk about her as one of the foremost restaurant proprietors in Goa.
"Sahi soch, sahi loan, toh life set!" Aarti, in her entrepreneurial journey from ₹10,000 to ₹10 crores, has illustrated that with some smart money decisions, one can fulfil every dream.
In 2023 the Reserve Bank of India indicated that 70% of small companies use loans to grow their business. By handling loans successfully, entrepreneurs and investors have developed assets and grown rich.
Successful investors and business owners use loans to build wealth. Most people see borrowing money as a strategic tool for speeding up their achievements, but it turns into a severe debt problem if they handle it poorly.
Many successful businesses across different sectors originated by obtaining loans. You can create substantial returns through your profitable business when you take loans to start or grow it.
Smart investors use home loans to buy properties that they profitably rent to others. When real estate prices increase, it helps people build up their wealth.
Those with market insights can grow their wealth when they use loans to put money into stock markets or businesses.
Taking an education loan will help you earn more by getting a better job or starting your own business in a specialised field.
Although he launched his business from a simple roadside teashop, he set powerful goals for himself. Using ₹10,000, he boosted service quality and added special tea blends, which brought in more customers.
After his business succeeded, he got a ₹5 lakh loan from the bank to expand his operation with five new locations. His highly popular "Ramesh Kadak Chai" brand helped him get a ₹1 crore franchise loan. He founded a tea empire worth ₹100 crore by establishing 100 breweries throughout ten years.
Year | Loan Taken | Business Expansion | Revenue Growth |
Year 1 | ₹10,000 | Improved stalls & flavours | ₹50,000 per month |
Year 3 | ₹5 lakh | Opened 5 outlets | ₹5 lakh per month |
Year 5 | ₹1 crore | Franchised 50+ outlets | ₹10 crore per year |
Year 10 | ₹100 crore brand | 100+ outlets and packaged tea | ₹100 crore+ revenue |
Despite being a middle-class woman, Anita made leveraged stock trades in Mumbai to increase ₹50,000 into ₹10 million. She invested borrowed money to purchase stocks that had fallen in value.
Year | Loan Taken | Investment Strategy | Portfolio Value |
2010 | ₹50,000 | Invested in undervalued stocks during a market dip | ₹2,00,000 |
2015 | ₹5,00,000 | Used a margin loan to scale up blue-chip investments | ₹1 crore |
2020 | ₹20,00,000 | Invested aggressively during the COVID-19 crash | ₹5 crore |
2023 | No new loan | Long-term holdings and strategic exits | ₹10 crore |
Rahul, an IT specialist, used a ₹50,000 loan to make his initial purchase of his first apartment. He started by renting his property and then put the money back into more real estate investments. Today he has built an estate worth 50 crore rupees through several property acquisitions.
Year | Investment | Loan Amount | Property Value | Rental Income |
Year 1 | 1st Apartment (Pune) | ₹10 lakh | ₹15 lakh | ₹12,000 |
Year 3 | 2nd Apartment (Mumbai) | ₹25 lakh | ₹40 lakh | ₹25,000 |
Year 7 | 3rd Apartment (Bangalore) | ₹50 lakh | ₹90 lakh | ₹40,000 |
Year 10 | 1st Commercial Office | ₹1 crore | ₹1.8 crore | ₹1.2 lakh |
Year 20 | Multiple Properties Owned | ₹5 crore | ₹50 crore | ₹8 lakh+ |
Neha, in Jaipur, launched an AI-based customer service tool through her government startup fund-backed loan of ₹2 lakh. She preferred to use business profits to grow her operations instead of seeking venture capital.
A merchant signed an initial business contract worth ₹5 lakh with her, which served as her initial profitable deal. She spent her profit on product enhancements and hired additional employees. Within two years, her business profits achieved the ₹5 crore mark, and she earned a ₹50 crore corporate loan to enter international markets.
Thanks to her smart financing decisions, her business has grown to a market value of 500 crores, which shows that debt can become a big-ticket success through effective borrowing techniques.
Year | Loan Taken | Revenue | Key Milestone |
Year 1 | ₹2 lakh | ₹0 | Startup Launched |
Year 2 | ₹0 | ₹5 lakh | First Big Client |
Year 3 | ₹10 lakh | ₹5 crore | Business Expansion |
Year 4 | ₹50 crore | ₹500 crore | Global Expansion |
Whether you get ahead or get into trouble depends on what you do with the money you borrow. Thanks to Aarti's cooking expertise, she invested ₹10,000 to build a ₹10 crore chain of beach restaurants in Goa. These five points from her experience offer valuable tips on responsible lending and achieving wealth.
When Aarti wanted to start her food stall, she chose to invest in it with ₹10,000 instead of wasting it on flimsy things.
Each type of loan offers unique payments and fees to its users. Selecting a suitable loan makes all the difference between success and failure.
As Aarti increased her operations, she picked a small business loan despite offering a big personal loan with excessive rates.
Use the profits to repay the loans and to scale your business instead of spending it. The sooner you clear your debt, the more financial freedom you get.
Aarti put every profit back into business capital to buy new equipment, hire staff and launch a restaurant instead of spending personally.
Your credit score of 750 or above enables you to secure low-fee loans and qualify for larger loan sums. Make your EMI payments on time and control your credit usage.
Aarti proved her success by repaying small loans promptly, which boosted her credit score and made larger loan approval possible for business expansion.
Decide how you will pay back the loan before you apply for it.
Aarti began with small loans while taking defined risks that depended on increasing profits to secure repayment.
Taking out loans beyond your budget can create problems in your financial situation:
Picking the wrong loan will increase the costs of the loan and make payments harder to handle.
Loan Type | Best Use | Avoid For |
Business Loan | Expanding a business | Personal expenses |
Home Loan | Buying property | Short-term needs |
Personal Loan | Emergencies | Luxury purchases, vacations |
Before you sign, look at all lending rates, add-on costs and penalty fees.
Loan Type | Average Interest Rate (p.a.) |
Home Loan | 7% to 9% |
Business Loan | 10% to 15% |
Personal Loan | 12% to 24% |
Credit Card Loan | 30% to 40% |
People with missed debt payments face additional costs plus damages to their credit score.
Refinancing frequently increases overall debt.
A credit profile appears better when you utilise both secured home and vehicle loans alongside unsecured credit cards and loans.
Credit Score | Loan Approval | Interest Rates |
750+ | Very High | Lowest |
650 - 749 | Moderate | Average |
Below 650 | Low / Rejected | High |
Aarti’s journey from ₹10,000 to ₹10 crore proves that loans, when used wisely, can be a game-changer. From small food deliveries to a thriving beachside restaurant empire, she reinvested profits, chose the right loans, and scaled her business strategically. Like her, countless entrepreneurs have turned borrowed capital into lasting wealth.
The key lies in borrowing for growth, maintaining financial discipline, and planning repayments smartly. If done right, loans don’t just fund dreams—they build empires.
About the Author
LoansJagat Team
We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?
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