Keyword Proximity in SEO

It refers to the placement of keywords on a web page in relation to each other or, in some cases, in relation to other words with a similar meaning as the queried keyword.

For search engines, that grade a keyword match by keyword proximity, the connected phrase home loans will outrank a citation that mentions home mortgage loans assuming that you are searching only for the phrase "home loans".

Keyword proximity refers to closeness of keywords. Your keywords should be close to each other in content of web page. Many people don’t know about keywords. They generally treats key phrases as a keyword. Usually we do not target keyword.