Analytical investigations have been carried out to study the flow instability behaviour in a boiling two-phase natural circulation loop under low quality conditions. For this purpose, the computer code TINFLO-S has been developed. The code solves the conservation equations of mass, momentum and energy and equation of state for homogeneous equilibrium two-phase flow using linear analytical technique. The results of the code have been validated with the experimental data of the loop for both the steady state and stability. The study reveals that the stability behaviour of low quality flow oscillations is different from that of the high quality flow oscillations. The instability reduces with increase in power and throttling at the inlet of the heater. The instability first increases and then reduces with increase in pressure at any subcooling. The effects of diameter of riser pipe, heater and the height of the riser on this instability are also investigated.