This is not a new answer, but it helped me to understand the different aspects of the answers above (and it is too much for a comment).
Using Git Bash just try:
me@pc MINGW64 /c/Test
$ ls -al
total 16
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:35 ./
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:11 ../
me@pc MINGW64 /c/Test
$ git init
Initialized empty Git repository in C:/Test/.git/
me@pc MINGW64 /c/Test (master)
$ ls -al
total 20
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:35 ./
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:11 ../
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:35 .git/
me@pc MINGW64 /c/Test (master)
$ cd .git
me@pc MINGW64 /c/Test/.git (GIT_DIR!)
$ ls -al
total 15
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:35 ./
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:35 ../
-rw-r--r-- 1 myid 1049089 130 Apr 1 11:35 config
-rw-r--r-- 1 myid 1049089 73 Apr 1 11:35 description
-rw-r--r-- 1 myid 1049089 23 Apr 1 11:35 HEAD
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:35 hooks/
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:35 info/
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:35 objects/
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:35 refs/
Same with git --bare
:
me@pc MINGW64 /c/Test
$ ls -al
total 16
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:36 ./
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:11 ../
me@pc MINGW64 /c/Test
$ git init --bare
Initialized empty Git repository in C:/Test/
me@pc MINGW64 /c/Test (BARE:master)
$ ls -al
total 23
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:36 ./
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:11 ../
-rw-r--r-- 1 myid 1049089 104 Apr 1 11:36 config
-rw-r--r-- 1 myid 1049089 73 Apr 1 11:36 description
-rw-r--r-- 1 myid 1049089 23 Apr 1 11:36 HEAD
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:36 hooks/
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:36 info/
drwxr-xr-x 1 myid 1049089 0 Apr 1 11:36 objects/