There was a money lender in the kingdom. He charged plenty of interests from the innocent people who borrowed money from him. He also took away costly properties from those who couldn't pay such high interest amount.
Tenali Rama came to know about this bad money lender he wanted to teach a good lesson to him. So he went to that money lender and said that he had come there to borrow some money for the coming festival season. The money lender already knew about the costly horse which was gifted to Tenali Rama by the King.
The money lender agreed to give money but on one condition. The condition was that, if Tenali Rama fails to repay the money and the interest for it within 30 days, then he should sell the horse that he got as gift from king and pay that full amount to the money lender. Tenali Rama realized the money lender's evil plan behind this condition. He agreed and signed the agreement papers.
Days rolled by. Tenali Rama had some plans in his mind, so he never bothered to repay the money. After 30 days, the money lender with some elders in the town and the agreement papers signed by Tenali Rama went to Rama's house. He told the elders about the agreement and asked Tenali Rama to sell the horse and give that money to him.
Tenali Rama went to back of his house and returned with the horse and a small cat in his hands. He walked to the market place and stopped near a small crowd of people. Then Tenali Rama shouted, "Dear people, I am selling this little cat for 1000 gold coins". Everyone started laughing on hearing this.
Tenali Rama continued, "and the one who buys that cat will get my horse for 1 cent" . Now everyone were surprised with this offer. One rich man in the crowd who knew about the real value of the horse, readily agreed to buy the cat for 1000 gold coins and the horse for just a single cent.
Then Tenali Rama went back to the money lender and gave him that single penny. The money lender felt very bad for being fooled by Tenali Rama.
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