Go to File -> Settings -> Tools -> Terminal and change Shell path based on the the installed git version.
for 64bit:
"C:\Program Files\Git\bin\sh.exe" --login -i
for 32bit:
"C:\Program Files (x86)\Git\bin\sh.exe" --login -i
Don't forget the quotes around the command.
Just an FYI, but an alias for
--login -i
(interactive login) is to simply specify-li