This article proposes a novel hybrid heuristic search algorithm based on Harmony search and particle artificial bee colony algorithm (HSA-PABC) for shunt capacitor placement problem. The objective function is framed to minimize power loss and to maximize voltage stability. To search for the optimal location of shunt capacitors, the combinatorial use of loss sensitivity factor and hybrid HSA-PABC algorithm is utilized. In this paper, different types of voltage dependent load models are taken into consideration to investigate their influence on the active power loss and voltage stability of the RDN. Simulation results shows that the voltage dependent load models lead to completely different solutions interms of power loss reduction, voltage stability improvement and net annual savings which are the crucial parameters in the decision process of optimal shunt capacitor placement problem. The result outcomes of the proposed hybrid algorithm outperform the results of other heuristic techniques in the literature. Keywords: Radial Distribution Network (RDN), Harmony Search Algorithm (HSA), Particle Artificial Bee Colony (PABC), Loss Sensitivity Factor (LSF), Backward-Forward Sweep based load flow (BFS), Voltage Stability Index (VSI)