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In recent years many authors largely given attention to the effect of active loading index for low voltage distribution system. But this paper presents a novel approach for determining the reactive loading index of a low voltage distribution system at the proximity of voltage collapse point. The proposed procedure of maximum permissible load bus voltage of a power system within reactive loading index range was tested on the simple IEEE 14 bus, IEEE 30 bus, and IEEE 57 bus systems. The effectiveness of the proposed loading index against the load reactive power for different values of load voltages within reactive loading index range are estimated faithfully and significant results are observed to be in very good agreement.