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LoansJagat Team

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18 Jun 2025

From ₹10,000 to ₹10 Crore: Stories of People Who Became Rich with Smart Loans

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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.

 

Can Loans Make You Rich? The Truth Revealed – "Loan Se Banega Crorepati?

 

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.

 

How Loans Can Make You Rich


Investing in a Business 

 

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.

 

  • By utilising loan money, Aarti launched her food business, and her venture reached a total value of ₹10 crore.


Real Estate Investments 

 

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.

 

  • For instance, buying a ₹50 lakh apartment with a 20% down payment and later selling it for ₹1 crore doubles your investment.


Stock Market & Mutual Funds

 

Those with market insights can grow their wealth when they use loans to put money into stock markets or businesses.

 

  • For example, a loan of ₹1 lakh invested in stocks that grow 20-30% each year will boost your wealth much higher.

Education & Skill Development 

 

Taking an education loan will help you earn more by getting a better job or starting your own business in a specialised field.

 

Real Success Stories of Smart Borrowing – "Sapne Honge Sach!”


"Ek Garib Chaiwala Se Business Tycoon!" – From Tea Stall to a ₹100 Crore Empire

 

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


"Dalal Street Ka Don” – The Investor Who Conquered the Leveraged Stock Trade

 

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


"Makanwala Se Malik!" – How a ₹50,000 Loan Built a Real Estate Tycoon

 

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 (Per Month)

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+

 

"Start-Up Wali Bhabhi" – A Tech Entrepreneur's Journey from Debt to Billions

 

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

 

"Dhandho Ka Fundaa!" – 5 Key Lessons for Smarter Borrowing

 

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.


Borrow for Growth, Not Luxury

  • You should get loans to put them into assets that create earnings, such as business ventures or property acquisitions for future education purposes.

  • Avoid borrowing for cars, vacations, or gadgets since they become less valuable over time.

 

When Aarti wanted to start her food stall, she chose to invest in it with ₹10,000 instead of wasting it on flimsy things.


Choose the Right Loan Type

 

Each type of loan offers unique payments and fees to its users. Selecting a suitable loan makes all the difference between success and failure.


  • Business loans – Best for expansion and growth
  • Home loans – Long-term, low-interest investment
  • Education loans – Increase earning potential
  • Personal loans & credit cards – High interest, risky for investments

 

As Aarti increased her operations, she picked a small business loan despite offering a big personal loan with excessive rates.


Reinvest Profits to Reduce Debt

 

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.


Maintain a Healthy Credit Score

 

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.


Have a Clear Repayment Plan

 

Decide how you will pay back the loan before you apply for it.


  • Maintain your EMI payments between 30% and 40% of your monthly salary
  • Save money in a special fund to handle unexpected problems
  • Avoid unnecessary debt refinancing

 

Aarti began with small loans while taking defined risks that depended on increasing profits to secure repayment.

 

"Udhaar Ka Bhoot!" - Avoiding the Debt Trap: Common Loan Mistakes to Watch


Borrowing More Than You Can Afford

 

Taking out loans beyond your budget can create problems in your financial situation:

 

  • Pay monthly loan installments at 30% to 40% of your monthly income.
  • Plan repayments before borrowing.


Choosing the Wrong Loan Type

 

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

 

Ignoring Interest Rates and Additional Fees

 

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%

 


Missing or Delaying EMI Payments

 

People with missed debt payments face additional costs plus damages to their credit score.

 

  • Using automatic payment will help you pay on time.
  • Keep separate savings to pay EMIs when needed.


Refinancing Too Often

 

Refinancing frequently increases overall debt.

 

  • Take new loans only when they offer substantial rate reductions.

 

Boosting Your Credit Score for Better Loan Terms


Pay EMIs and Bills on Time

 

  • Create an automatic payment system to prevent late bill payments.
  • Single payment mistakes harm your credit score right away.

 

Keep Credit Utilization Low

 

  • Use not more than 30% of available credit.
  • Use a higher credit limit responsibly as you use it.


Avoid Multiple Loan Applications

 

  • Many loan applications damage your credit score statistics.
  • Take out loans only when you have important expenses to cover.


Check and Correct Credit Report Errors

 

  • Review your credit report regularly.
  • Report and fix any errors.


Diversify your credit accounts to show better creditworthiness

 

A credit profile appears better when you utilise both secured home and vehicle loans alongside unsecured credit cards and loans.

 

Credit Score and Loan Impact

 

Credit Score

Loan Approval

Interest Rates

750+

Very High

Lowest 

650 - 749

Moderate

Average 

Below 650

Low / Rejected

High 

 

Conclusion

 

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.

 

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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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