In our earlier studies the BaTiO3 samples were processed at higher temperatures like 1000oC and explained the observed magnetism in it. It is found that the charge transfer effects are playing crucial role in explaining the observed ferromagnetism in it. In the present work the samples were processed at lower temperatures like 650oC-800oC. The carrier densities in these particles were estimated to be ∼ 1019-1020/cm3 range. The band gap is in the range of 2.53eV to 3.2eV. It is observed that magnetization increased with band gap narrowing. The higher band gap narrowed particles exhibited increased magnetization with a higher carrier density of 1.23×1020/cm3 near to the Mott critical density. This hint the exchange interactions between the carriers play a dominant role in deciding the magnetic properties of these particles. The increase in charge carrier density in this undoped BaTiO3 is because of oxygen defects only. The oxygen vacancy will introduce electrons in the system and hence more charge carriers means more oxygen defects in the system and increases the exchange interactions between Ti3+, Ti4+, hence high magnetic moment. The coercivity is increased from 23 nm to 31 nm and then decreased again for higher particle size of 54 nm. These particles do not show photoluminescence property and hence it hints the absence of uniformly distributed distorted [TiO5]-[TiO6] clusters formation and charge transfer between them. Whereas these charge transfer effects are vital in explaining the observed magnetism in high temperature processed samples. Thus the variation of magnetic properties like magnetization, coercivity with band gap narrowing, particle size and charge carrier density reveals the super paramagnetic nature of BaTiO3 nanoparticles. The nonlinear optical coefficients extracted from Z-scan studies suggest that these are potential candidates for optical imaging and signal processing applications.