You can get a hosting company as low as $0.5 or $2 (Indian) a month ... but here is a list of problems that you may run into eventually!:
1 Limited EVERYTHING: This is something that not only happens with the free hosting companies... but also with the cheap ones. You are limited in the amount of space you can host/upload (this limits the amount of information, content, scripts and images your site can have).
2 HORRIBLE Support: Ahhhh, man oh man. This one will do you in for sure. Almost all the hosting companies that are cheap and inexpensive have limited or NO support. Or, the best they offer you is email only support during business hours (9 to 5).
The first problem is that if you are new to the Internet, it's almost impossible to have the real technical questions answered only via an email. You may and will usually HAVE to speak to a live customer support representative. The next problem that we ran into ourselves is that we had lots of questions that needed to be answered at OTHER times rather than just the 9-5 "business hours".
What are you going to do if something at your site crashes or you delete the wrong file by accident ... and nobody will be able to help you till the next day? Chances are NOTHING ... You simply can't do a thing except wait. You are going to lose money, time and your sanity! It's not worth it (trust me on this one ...it will take to wait 2-4 days sometimes to have an URGENT message/email replied to!)
24 hours support, 7 days a week with a live representative that doesn't keep you on hold for more than a couple minutes is a MUST. This really is the MAJOR benefit/feature you should be looking for in your hosting company!
3 Super Slow Connection: Once you start getting even a little traffic to your site, you will notice all sorts of problems and complaints. And the minute you get an abnormally large influx of visitors (like after a promotion), your site WILL crash (or slow down to "turtle-speed")!
Basically, the reason for this is because these cheap hosting companies oversell the space on their server. If they are only capable of allowing an "XXXXX" amount of visitors... and your server is shared by 100 or more other web sites, you are going to be in big trouble -- EVEN if another site that happens to be on your same server gets an abnormally high amount of traffic to the site.
Massive & Expensive Upgrade Fees: Another major problem because they have limited your capabilities, every time you want to upgrade to a specific service or add on something to your hosting package, you will be charged A LOT!
In fact, this is how they get you. Cheap on the way in, but as soon as you want to add IN anything, you're going to be looking at major expenses and upgrade fees!