I personally stayed in Hostel for longer stay in Rishikesh under 500 per night in dorm rooms. Hostel name is Bunk Stay which is at Laxman Jhula. They have a roof top cafe as well. You can meet new people out there and can have a good time and easy to move around Laxman Jhula and Tapovan. The only con is getting to the hostel which is a bit steep to climb to reach hostel. There are two ways: one is steep and another one has steps. from opposite to Laxman Jhula entry.
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