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Level 50 Riding Perk gives +.5 Loyalty
Level 75 Leadership Perk gives +1 Loyalty
Level 150 Bow Perk gives +1 Loyalty (this one takes more investment to get).
Kingdom policies add loyalty as well. The money you lose in tax is more than offset in the increased prosperity. You'll have to drain your allied clans' influence to get them passed.
Forgiveness of Debts gives +2 Loyalty
Tribunes of the People gives +1 Loyalty
Assign a governor of the same culture to negate the Governor Culture debuff. Raise the security (bigger garrison) to get more loyalty. This also means your expenses go up by paying for those troops. There's a few perks (can't remember which) that increase Security. There are also policies - Bailiffs and Magistrates I think.
the +3 from festival is only active if you have no other ongoing building projects. so cancel all of them and let the festival run until the loyalty stabilizes.
castles can't rebel, so you won't lose it from low loyalty either way.
I thought a governor was essential.
Is there something else I can do to get loyalty higher?
Low security can affect Loyalty. Get your security up.
Make sure everyone is fed and your villages are secure.
Are your fairgrounds maxed?
Edit to add: Your older brother comes with lots of governor perks, and you can also re-spec him at the arena to get more. I think you can get him to give at least +1.5 Loyalty, plus a couple of Security and a couple of extra militia if you pick the right perks.
With and additional 1.5 loyalty and boosted security, he can overcome that -1 wrong culture penalty.
How do I found a governor of the same culture?
How do I know what is the culture of each possible governors?
What exactly is security? I maxed the amount of people in garrison.
Security is the overall 'safety' of a town. A few factors play into this. Garrisons have a decent impact on it. Notables in the town or bound villages will need quests done. As long as they're not done, they'll bring down security. Too many bandits in the area, and bandit hideouts will also lower security.
Keep the quests done, the bandits gone, and the garrison manned. You can also give your governor perks to boost security, or pass Kingdom Policies to help.
If you have ongoing construction projects, cancel them. They will never get done as long as loyalty is too low, so might as well let the +3 from the festival buff tick for a few days to stabilize the city.
I'm assuming that you're a Vassal of a faction, and you were awarded this castle after it was taken in war, hence the culture penalty. If you can, I would suggest trying to trade it for one of your culture. Seeing as you are unlikely to have 300 Trade skill, you can't do a direct trade. So what you can do is, when it looks like your faction is right about to capture a settlement that matches YOUR culture, go into the Kingdom tab and basically "give" your castle to another clan. If you time it right, you will end up getting the new fief awarded to you.
It's a LOT easier learning fief management when you don't start off 3 Loyalty/day in the hole.
This obviously won't fix your current Loyalty issue, but it will help down the road when you get more fiefs and have a bit more of a working knowledge of how they operate.
On the positive side, no factions can declare war on you when you're independent, so you're free to manage things at your own pace. On the negative side, you cannot enact any policies, so you'll have to manage everything yourself. Also, castles aren't huge money makers on their own.
As long as you're independent, make use of the surrounding towns. Buy some workshops so you can start getting a little extra income. Set up trade caravans. Bandits are no threat, and as long as you aren't antagonizing the factions, none of them will attack your caravans.
You'll probably want to snag a nearby town if you can. They have a much better potential to make money.