An eco-friendly green and one-pot synthesis of highly monodispersed iron (Fe) nanoparticles (NPs) by using a natural biopolymer, gum kondagogu (GK) as reducing and capping agent is proposed. The NPs synthesised were characterised by ultra-violet-visible spectroscopy, transmission electron microscopy, scanning electron microscopy and X-ray diffraction. As the concentration of gum and time increases, the intensity of NPs formation increased. The NPs were highly monodispersed with uniform circular shapes of 2-6 nm in size. The formed NPs were crystalline in nature which was confirmed by diffraction analysis. The conversion ratio of Fe ionic form to NPs was 21% which was quantified by inductively coupled plasma mass spectroscopy (ICP-MS). Fe is essential for plant growth and development. A study was conducted to examine the effect of these NPs on the growth of mung bean (Vigna radiata). The radical length and biomass was increased in seeds exposed to Fe NPs than the ions. The uptake of Fe NPs by the sprouts was also quantified by ICP-MS, in which Fe was more in mung bean seeds exposed to NPs. The α-amylase activity was increased in the seeds exposed to NPs. The observed increase in the biomass by Fe NPs and seed germination may facilitate its application in the agriculture as an important cost-effective method for plant growth.