Due to huge increase in power demand, modern power system networks are being operated under highly stressed conditions. This has resulted into the difficulty in meeting reactive power requirement and maintaining the bus voltage within acceptable limits. Voltage instability in the system occurs in the form of a progressive decay in voltage magnitude at some of the buses. The problems of voltage instability and voltage collapse are the major concerns in the operation of power system. It is very important to do the power system analysis with respect to voltage stability. Flexible AC Transmission System (FACTS) device in a power system improves the stability, enhances the voltage stability margin and reduces the power losses. Identification of location of FACTS device in the power system is very important task. Research is carried out to investigate application of Particle Swarm Optimization (PSO), Genetic Algorithm (GA) and hybrid PSOGA to find optimal location and rated value of SVC device to minimize the voltage stability index, total power loss, load voltage deviation, cost of generation and cost of FACTS device to improve voltage stability in the power system. Optimal location and rated value of SVC device have been found for different loading scenario using PSO, GA and PSOGA. It is observed from the results that the voltages stability margin is improved, voltage profile of the power system is increased, load voltage deviation is reduced and real power losses also reduced by optimally locating SVC device in the power system. The proposed algorithm is verified with IEEE 14 bus and 30 bus power systems.