Our team currently does exactly this. Every developer has the following:
Git installed on their local machine
Access to their own personal shared drive (L:)
Access to a shared group drive (V:)
We have the "remote" repository (set up using init -bare) on the V: drive, and everyone has a clone on their personal L: drive. All changes are made to the L: drive and pushed up to the V: drive, which are then pulled down later by the other developers to their respective personal repositories on their L: drives. This works without any problems, and mitigates the need for a Git server.