But the internal resistance of the voltage source is very
minimal,right? If it is so minimal, then why do we have a voltage dip
that is observable at the load side?
It's only 'minimal' compared to the normal load current. Many loads draw much higher current when power is first applied, and then the internal resistance of the power supply is not minimal.
Some examples:-
Incandescent light bulb. Filament resistance is 10 times lower when cold.
DC electric motor. Stall current is typically around 3-5 times higher than rated operating current.
Power input filter capacitors (used in almost all electronic devices). internal resistance may be 0.01Ω or less.
If the power supply is regulated then its internal resistance may vary depending on load current. In a regulated supply the output voltage is usually held constant by applying negative feedback. This produces a much lower effective internal resistance, but only when the voltage regulation circuit is working. A sharp increase in load current will cause a momentary voltage drop until the feedback has time to take effect. If the unregulated input voltage drops below the 'dropout' voltage of the regulator then resistance will increase because there is no 'headroom' left to regulate from.
Most regulated supplies also have a current limit, which greatly increases resistance to stop current from going above the limit. Some supplies have 'fold-back' current limiting which reduces current to a lower value until the 'short' is removed. Some switching power supplies shut off completely, and (may) then restart a short time later. .