Planning a trip to Delhi on a budget? Discover the 12 best cheap hotels and hostels near metro stations, convenience stores, and iconic street food spots.Delhi is a mesmerizing collision of ancient history and hyper-modern energy. From the winding, spice-scented alleys of Old Delhi to the sprawling, leafy avenues of South Delhi, the city is a paradise for travelers. However, navigating India’s massive capital can be overwhelming, and if you choose the wrong neighborhood, you might find yourself spending way too much time and money sitting in legendary traffic jams.The ultimate hack for conquering Delhi on a budget is basing yourself near the Delhi Metro. It is world-class, fully air-conditioned, and costs mere pennies to travel across the entire city. Furthermore, staying near local markets or "Twenty Four Seven" convenience stores (Delhi's equivalent of 7-Eleven) ensures you have round-the-clock access to cheap bottled water, snacks, and essentials.Whether you want to eat incredible butter chicken for a few dollars or explore Mughal ruins, here is a curated guide to the top 12 best cheap budget hotels and hostels in Delhi that offer unbeatable value and strategic locations.1. Zostel DelhiAddress: 5, Araku Shan Road, Opposite New Delhi Railway Station, Paharganj, New Delhi 110055Approximate Price: $10 - $25 USD per nightZostel is India’s most famous hostel chain, and their Delhi outpost is a vibrant, incredibly social haven for backpackers. The facilities here are top-notch, featuring bright air-conditioned dorms, a fantastic rooftop cafe, strong Wi-Fi, and a lively common room filled with games and travelers from around the world.Location-wise, it does not get more practical. Situated in Paharganj, you are a three-minute walk from the New Delhi Railway Station and the Airport Express Metro line. This means you can get from the airport to your bed for under $2. The main bazaar is right outside, packed with local grocery stores, pharmacies, and 24-hour ATMs. For food, the street is legendary for cheap dhabas (local diners) serving incredible paneer curries and fresh naan. It is the best budget location because it completely eliminates expensive airport taxi rides while keeping you connected to every corner of the city.👉 View the latest prices and room availability for Zostel Delhi on Agoda2. goStops DelhiAddress: 4/23-B, Asaf Ali Road, Daryaganj, New Delhi 110002Approximate Price: $12 - $30 USD per nightgoStops Delhi brings a premium, highly secure hostel experience right to the edge of Old Delhi. The property features thick, comfortable mattresses, individual reading lights, an indoor home theater, and a massive courtyard perfect for morning yoga or evening socializing.Located in Daryaganj, you are positioned perfectly between the chaos of Old Delhi and the wide streets of Central Delhi. The Delhi Gate Metro Station is just a short walk away. A local 24-hour convenience kiosk is right down the block for midnight snacks. The greatest perk of this location is the food; you are walking distance from Jama Masjid, the epicenter of Delhi’s Mughal street food, where you can feast on cheap, world-famous kebabs and biryani. It is an amazing budget spot for foodies who want authentic culture at their doorstep.👉 View the latest prices and room availability for goStops Delhi on Agoda3. Madpackers Hostel DelhiAddress: S-39A, Panchsheel Park, South Delhi, New Delhi 110017Approximate Price: $12 - $25 USD per nightMadpackers has won multiple awards for being one of the best hostels in India, and it is easy to see why. The vibe is incredibly warm, offering a famous rooftop garden, impeccably clean bathrooms, a great communal kitchen, and incredibly helpful staff who run local food walks.This hostel is tucked away in the upscale, leafy neighborhood of Panchsheel Park in South Delhi. The Hauz Khas Metro Station is easily accessible, linking you directly to major tourist sites. While it sits in a quieter residential zone, a modern supermarket and a Twenty Four Seven store are just a quick auto-rickshaw ride away. You are also very close to Hauz Khas Village, a trendy area packed with beautiful historic tombs and cheap student cafes. It is the best location for travelers who want a safe, quiet, and affluent neighborhood feel without paying luxury hotel prices.👉 View the latest prices and room availability for Madpackers Hostel Delhi on Agoda4. Bloomrooms @ New Delhi Railway StationAddress: 8591, Arakashan Road, Paharganj, New Delhi 110055Approximate Price: $35 - $60 USD per nightIf you want the privacy of a hotel but have a strict budget, Bloomrooms is a revelation. Recognizable by its signature bright yellow and crisp white decor, this boutique budget hotel offers incredibly clean, compact private rooms with en-suite bathrooms, highly effective air conditioning, and a fantastic on-site cafe.Just like Zostel, it is located near the New Delhi Railway Station in Paharganj, giving you ultimate transit supremacy. The RK Ashram Marg Metro Station is also a short walk away. You have immediate access to countless local convenience stores, fruit vendors, and budget-friendly bakeries. It provides an oasis of extreme cleanliness and quiet right in the middle of Delhi’s most bustling transit hub, making it the smartest budget hotel choice for couples or flashpackers.👉 View the latest prices and room availability for Bloomrooms @ New Delhi Railway Station on Agoda5. LetsBunk PoshtelAddress: T-40, Hauz Khas Village, New Delhi 110016Approximate Price: $25 - $50 USD per nightLetsBunk Poshtel bridges the gap between a high-end hostel and a boutique hotel. It features a stunning, minimalist Scandinavian design, offering both luxury dorms and stunning private rooms. Facilities include a chic ground-floor cafe, pristine bathrooms, and high-speed remote-work-friendly Wi-Fi.The location is spectacular. Hauz Khas Village (HKV) is a pedestrian-friendly enclave built around a 13th-century fort and a beautiful deer park. The Green Park Metro station is a quick auto-rickshaw ride away. HKV is lined with boutique grocery stores, late-night convenience shops, and dozens of incredible rooftop bars and cheap Himalayan momo (dumpling) stands. If you want to experience Delhi's hipster nightlife and cafe culture on a budget, this is the absolute best place to base yourself.👉 View the latest prices and room availability for LetsBunk Poshtel on Agoda6. The Hosteller DelhiAddress: 121, Mathura Road, Friends Colony, New Delhi 110065Approximate Price: $10 - $22 USD per nightThe Hosteller is a highly reliable, modern chain that provides excellent security, thick mattresses, and large locker storage. The Delhi branch features a very cozy indoor lounge, an open-air terrace, and a helpful travel desk to book local train tickets.Situated near Ashram Chowk in South Delhi, the Ashram Metro Station is practically next door, making transit incredibly fluid. You are very close to the New Friends Colony (NFC) Community Centre, which houses large supermarkets, pharmacies, and a vibrant local market. The surrounding area is packed with famous South Indian budget restaurants and fantastic shawarma stands. It is a highly strategic budget location because it gives you rapid metro access to both the central monuments and the modern southern malls.👉 View the latest prices and room availability for The Hosteller Delhi on Agoda7. Joey's HostelAddress: 1/49 Lalita Park, Main Vikas Marg, Laxmi Nagar, New Delhi 110092Approximate Price: $8 - $15 USD per nightJoey's Hostel is famous on the backpacker circuit for having one of the friendliest, most social atmospheres in the city. The staff goes out of their way to make you feel at home, offering a free basic breakfast, Xbox gaming zones, and regular group outings to hidden city spots.Located in East Delhi, it sits right next to the Laxmi Nagar Metro Station. While it is across the river from the main tourist hubs, the metro whisks you directly into Connaught Place in under 15 minutes. The area is a massive student hub, which means everything is priced for local budgets. Countless kirana (grocery) stores and local snack vendors line Vikas Marg. You can eat massive plates of chole bhature (spicy chickpeas and fried bread) for less than a dollar. It is the ultimate spot for ultra-budget travelers.👉 View the latest prices and room availability for Joey's Hostel on Agoda8. Amigo HostelAddress: House No 44, Block 11, Majnu Ka Tilla, New Delhi 110054Approximate Price: $8 - $18 USD per nightAmigo Hostel offers clean, comfortable dorms and private rooms in one of Delhi's most unique neighborhoods. The property features a relaxed rooftop with views of the Yamuna River, free Wi-Fi, and a very laid-back, peaceful energy.The location is the real draw here. Majnu Ka Tilla is Delhi's Tibetan Colony, meaning the moment you step outside, you feel like you have left India and entered the Himalayas. The Vidhan Sabha Metro Station is a short ride away. The narrow, pedestrian-only alleys are filled with Tibetan convenience stores and unbelievable budget food. You can feast on authentic thukpa (noodle soup) and laphing (spicy cold noodles) for absolute pennies. It is the best budget location for travelers who want a deeply cultural, quiet, and completely unique Delhi experience.👉 View the latest prices and room availability for Amigo Hostel on Agoda9. Hotel Hari PiorkoAddress: 4775, Main Bazaar Road, Paharganj, New Delhi 110055Approximate Price: $20 - $40 USD per nightHotel Hari Piorko is a legendary budget hotel that has been serving international travelers for years. It offers a surprising touch of traditional Indian decor alongside modern amenities like flat-screen TVs, reliable hot water, and a very popular rooftop restaurant.Situated deep in the heart of the Paharganj Main Bazaar, it is a sensory overload in the best way possible. The RK Ashram Marg Metro Station is just a five-minute walk away. You step out of the hotel directly into a bustling market where you can buy cheap clothing, souvenirs, and daily groceries. Local sweet shops and 24-hour convenience stalls are literally next door. It is the perfect budget choice if you want the electric, chaotic charm of a traditional Indian bazaar right outside your window.👉 View the latest prices and room availability for Hotel Hari Piorko on Agoda10. Moustache DelhiAddress: D-922, New Friends Colony, New Delhi 110025Approximate Price: $10 - $22 USD per nightMoustache is another stellar Indian hostel chain known for blending traditional aesthetics with modern backpacker needs. The Delhi property is spacious, exceptionally clean, and features an airy courtyard, excellent air-conditioning, and sturdy metal bunk beds that don't squeak.Located in the upscale, secure residential area of New Friends Colony, this is a phenomenal retreat from the city's noise. The Sukhdev Vihar Metro Station connects you swiftly to the rest of the capital. The NFC market is nearby, boasting large modern supermarkets, reliable ATMs, and a mix of budget-friendly cafes and local street vendors. It is the best location if safety and a quiet night's sleep are your top priorities on a budget.👉 View the latest prices and room availability for Moustache Delhi on Agoda11. Smyle InnAddress: 916, Gali Chandi Wali, Main Bazaar, Paharganj, New Delhi 110055Approximate Price: $15 - $30 USD per nightSmyle Inn is a family-run budget hotel tucked into a quiet alleyway just off the noisy Main Bazaar. It is famous for its outstanding hospitality, offering a free basic breakfast, travel assistance, and simple but highly functional en-suite private rooms.Its location in a narrow lane means you get the absolute convenience of Paharganj without the sleep-shattering noise of the main street. The New Delhi Railway Station is a ten-minute walk away. You have instant access to local pharmacies, budget travel gear shops, and countless street food carts selling fresh fruit and hot samosas. For budget travelers who want a private room, family-friendly security, and instant transit access, this is a hidden gem.👉 View the latest prices and room availability for Smyle Inn on Agoda12. Backpackers Heaven @ New Delhi Train StationAddress: 15/1, Main Bazaar, Paharganj, New Delhi 110055Approximate Price: $7 - $15 USD per nightLiving up to its name, Backpackers Heaven is a no-frills, highly efficient, and incredibly cheap hostel designed for true budget warriors. It provides basic but clean air-conditioned dorms, personal lockers, and a cozy common area to swap travel stories.Because it is located right on the Main Bazaar road, you are perfectly positioned for rapid transit. The Airport Express Metro is less than ten minutes away by foot. Everything you need for daily survival is within a 100-meter radius, from cheap bottled water at local kiosks to inexpensive rooftop restaurants serving multi-cuisine comfort food. If your goal is to spend the absolute minimum on a bed while maximizing your access to the city's transport network, this is the place to book.👉 View the latest prices and room availability for Backpackers Heaven @ New Delhi Train Station on Agoda