Hello aspirant,  

Some NLU has reserved a definite number of seats for domicile quota and other categories (SC/ST). But one would be able to avail the benefit of lower cutoff- only for home state NLU. Domicile category thing hepls a lot  for lower level of NLUs. For an example:  NLIU Bhopal doesn't have any seats for state quota for general category, Which means a candidate do not have any advantage in NLIU even if one have domicile of Madhya Pradesh and belong to general category.Hope you get the information.

Best of luck!!