How did Margayya solve the troubles between Mallanna and Kanda?

Margayya tells Mallanna, another villager, to pay 75 rupees to clear his old loan and apply for a new loan; Margaayya will then give the loan that Mallanna does not want to Kanda, a villager who does not qualify, who will pay Mallanna a rate of interest on the loan higher than that of the Co-operative Bank.