In this paper, we examine the role of peer‐to‐peer (P2P) platforms in enhancing financial inclusion from the borrowers’ point of view across the rural–urban dimension. We show that when number of bank branches decrease in a rural community, the P2P loan requests increase if there is at least one bank branch in the community allowing people to participate in the P2P market. We also find that the number of P2P loan requests from urban areas is higher when such areas have fewer pawnshops per capita. Our results suggest that P2P enhances financial inclusion of those lacking traditional institutions in rural communities and offers an alternative to those with fewer fringe banks in urban communities.

Debt is associated with higher stress and lower general health (Sweet et al., 2013). Debt stress, also referred to as financial stress / distress, is defined as a reaction to the condition of one's personal financial state (Prawitz et al., 2006). Higher levels of debt stress involve preoccupation with issues such as unpaid debt and bills or calls from debt collectors. Individuals perceive and react to their financial conditions differently. Two people with same levels of income and financial resources can have different levels of perceived financial distress (O'Neill et al., 2006). Negative financial events, also known as stressor events, contribute to perception of financial stress (Kim et al., 2003). Examples of such events include receiving overdue notices from creditors and collection agencies, insufficient funds to cover checks already written, falling behind on bills and mortgage payments and family money squabbles. Women report higher levels of debt stress than males (Dunn & Mirzaie, 2016). Given the direct association between stress and general health of an individual, it is conceivable that financial debt impacts the health of females differently than that of males. Hence, we study the impact of indebtedness on health across gender.Large number of studies have documented the relationship between debt and mental health (Bridges & Disney, 2010; Brown