MacOS – cannot even ssh to localhost

MacOS Sierra

I have enabled remote for user git and able to change to that user from terminal with “su – git” command, but not with “ssh git@127.0.0.1”

Verbose ssh as below:

mcb:~ grepmaster$ ssh -v git@127.0.0.1
OpenSSH_7.4p1, LibreSSL 2.5.0
debug1: Reading configuration data /etc/ssh/ssh_config
debug1: Connecting to 127.0.0.1 [127.0.0.1] port 22.
debug1: Connection established.
debug1: key_load_public: No such file or directory
debug1: identity file /Users/grepmaster/.ssh/id_rsa type -1
debug1: key_load_public: No such file or directory
debug1: identity file /Users/grepmaster/.ssh/id_rsa-cert type -1
debug1: key_load_public: No such file or directory
debug1: identity file /Users/grepmaster/.ssh/id_dsa type -1
debug1: key_load_public: No such file or directory
debug1: identity file /Users/grepmaster/.ssh/id_dsa-cert type -1
debug1: key_load_public: No such file or directory
debug1: identity file /Users/grepmaster/.ssh/id_ecdsa type -1
debug1: key_load_public: No such file or directory
debug1: identity file /Users/grepmaster/.ssh/id_ecdsa-cert type -1
debug1: key_load_public: No such file or directory
debug1: identity file /Users/grepmaster/.ssh/id_ed25519 type -1
debug1: key_load_public: No such file or directory
debug1: identity file /Users/grepmaster/.ssh/id_ed25519-cert type -1
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_7.4
debug1: Remote protocol version 2.0, remote software version     OpenSSH_7.4
debug1: match: OpenSSH_7.4 pat OpenSSH* compat 0x04000000
debug1: Authenticating to 127.0.0.1:22 as 'git'
debug1: SSH2_MSG_KEXINIT sent
debug1: SSH2_MSG_KEXINIT received
debug1: kex: algorithm: curve25519-sha256
debug1: kex: host key algorithm: ecdsa-sha2-nistp256
debug1: kex: server->client cipher: chacha20-poly1305@openssh.com MAC: <implicit> compression: none
debug1: kex: client->server cipher: chacha20-poly1305@openssh.com MAC: <implicit> compression: none
debug1: expecting SSH2_MSG_KEX_ECDH_REPLY
debug1: Server host key: ecdsa-sha2-nistp256 SHA256:5X8jxUlWln82ByrzHfUmUyXIij67LH62fS1HPVRDtf4
debug1: Host '127.0.0.1' is known and matches the ECDSA host key.
debug1: Found key in /Users/grepmaster/.ssh/known_hosts:60
debug1: rekey after 134217728 blocks
debug1: SSH2_MSG_NEWKEYS sent
debug1: expecting SSH2_MSG_NEWKEYS
debug1: SSH2_MSG_NEWKEYS received
debug1: rekey after 134217728 blocks
debug1: SSH2_MSG_EXT_INFO received
debug1: kex_input_ext_info: server-sig-algs=<ssh-ed25519,ssh-rsa,ssh-dss,ecdsa-sha2-nistp256,ecdsa-sha2-nistp384,ecdsa-sha2-nistp521>
debug1: SSH2_MSG_SERVICE_ACCEPT received
debug1: Authentications that can continue:publickey,password,keyboard-interactive
debug1: Next authentication method: publickey
debug1: Trying private key: /Users/grepmaster/.ssh/id_rsa
debug1: Trying private key: /Users/grepmaster/.ssh/id_dsa
debug1: Trying private key: /Users/grepmaster/.ssh/id_ecdsa
debug1: Trying private key: /Users/grepmaster/.ssh/id_ed25519
debug1: Next authentication method: keyboard-interactive
debug1: Authentications that can continue:publickey,password,keyboard-interactive
debug1: Next authentication method: password
git@127.0.0.1's password: 
debug1: Authentications that can continue:publickey,password,keyboard-interactive
Permission denied, please try again.
git@127.0.0.1's password: 
debug1: Authentications that can continue:publickey,password,keyboard-interactive
Permission denied, please try again.
git@127.0.0.1's password: 
debug1: Authentications that can continue:publickey,password,keyboard-interactive
debug1: No more authentication methods to try.
Permission denied (publickey,password,keyboard-interactive).

Any specific steps to be done?