Large leakage current and very low magnetic moment are the two most disadvantages of BiFeO₃ (BFO) which hinders the possibilities of its application in modern devices. Extensive research work is in progress to overcome these problems. We report here the beneficial effect of La doping in hydrothermally synthesized BFO nanoparticles having average size ∼50–60 nm. Distinct nonlinear M–H loop accompanied by large coercivity and improve magnetic moment have been observed at room temperature. In addition, lowering of leakage current is achieved by virtue of La doping. Taken together, these findings demonstrate the fundamental importance of doping and size effect in enhancing the multiferroic properties which will open up the possibility of BFO to be use in spintronic devices.