So, you are looking for a place where to stay in Delhi with family, free. I think that being a Delhite, I am in better position to guide.
There are different kind of places in Delhi. Every location is not suitable for every kind of visitor.
Nature of Visitor at Delhi:
Business These sort of visitors will find hotel near wholesale markets and exhibition centres.
Tourist The visitor who came Delhi for leisure, just to see and visit famous places will take hotel which is near to tourist spots. Most of the family groups stay here in Delhi.
Family A family man is always looking for safe area for family stay. Lets see that “what is safe area?” Safe area means where lightening on street is good, Surveillance cameras in the locality are adequate and in working condition, less or no pick pocketing, more police presence and so on…
In Transit Generally passenger who is coming in morning and leaving the capital in evening or night will take hotel near Airports, Railway Station or ISBT (Inter State Bus Terminals)
Medical Treatment There are couple of hospitals which are big or super specialty. Visitors from all over India and from abroad visit Delhi for treatment. Family members of these patients stay in lodges near these hospitals.
Writing Examination Students visiting Delhi, generally search hotel nearby to their examination hall. Hotels away from tourist hot spots are not in good shape and are comparatively costly.
Where to stay with family free, should be the first question after booking flight, train or bus tickets to Delhi. There is nothing free. Because at last moment you will not get better price or the room choice will not be great.
Tourist Hot Spots
Karol Bagh This is one of the most famous destination for tourists and local Delhites for shopping. The nearest metro station is Karol Bagh. And for any emergency there is a very big multi speciality hospital by the name BLK.
Pahargunj This area is famous because of New Delhi Railway Station as it is just opposite. You will find uncountable hotels. Few are good for families and are secured as well. Generally hotels here are small with small rooms.
Connaught Place Stay in Delhi here, as this is the best area in entire city, cream of the cream. You will find five star hotels and four star hotel as well. Janpath and Inner Circle markets are world famous. For cheap stuff there is Palika market. Couple of museums, cinema halls and iconic spots such as Jantar Mantar, India Gate, President House and Parliament are nearby.
Chandni Chowk Select this location in Delhi. if you are looking for very cheap accommodation or high volume traffic and noise. Apart of all of this you will be very close to Red Fort, Jama Maszid, Sees Ganj Gurdwara, Chawri Bazaar, Salim Garh Fort, Bhagirath Palace, Paranthay Wali Gali and so on. Nearest Metro Stations are Chandni Chowk, Red Fort and Jama Maszid. Most of the passengers with family avoid this location to stay.
Sadar Bazaar Passengers mostly stay here who come to do purchasing from Sadar Bazaar. Nearest Metro Station is R.K. Ashram Metro Station.
Mahipalpur Passengers choose this location to stay if they are bypassing Delhi Jaipur Highway or due to Indira Gandhi International Airport (T3)
Near Railway Stations
New Delhi Railway Station
Hazarat Nizamuddin Railway Station
Old Delhi Railway Station
Rohella Railway Station
Where to Stay in Delhi with Family Free?
You may be interested to check Delhi Tourist Blog as there is number of small blogs which are helpful to passengers visiting the capital of India.