Multifunctional iron oxide nanoparticles have a vast and emerging scope in the field of nanotechnology. Out of numerous techniques available to develop multifunctional magnetite nanoparticles, co-precipitation is considered as one of the most efficient and economical techniques. Bare magnetite nanoparticles could be functionalized to act as multifunctional nanoparticles with the help of some suitable and biocompatible coating materials. In present study, surface functionalization of magnetic iron oxide nanoparticles has been carried out with alginate and gum Arabic, respectively. For the confirmation of surface functionalization, the synthesized multifunctional magnetite nanoparticles were characterized FTIR spectroscopy and thermogravimetric analysis. Further, the drug loading efficiency of these surface coated iron oxide nanoparticles has been evaluated with the help of UV-visible spectrophotometric studies