Congestion management is one of the technical challenges in a Deregulated power system environment. Two types of Methodologies used in congestion Management are non-cost free methods and cost free methods. In this research work congestion is relieved by using cost-free methods considering FACTS Devices such as STATCOM (Static Synchronous Compensator) and UPFC (Unified Power Flow Controller) device. The power system stability enhancement and line loss minimization via optimal location of FACTS devices like STATCOM and UPFC are studied in this paper and performance analysis of STATCOM, UPFC has been worked out for Western Science Coordinated Council (WSCC) 9 bus system for the improvement of small signal stability using PSAT (Power System analysis toolbox) software. The performance of STATCOM, UPFC is demonstrated through the sensitivity based Eigen value analysis. The results show that the proposed approach has a capability to improve the Voltage stability, small signal stability, Loss minimization of the power system network.