Meaningful special repayment in split construction loan

Hello everyone,
I have a construction financing through a bank of €263,000 from two components. One is €228,000 and the other €35,000. Initially 20 years at 2.01% effective. The monthly payment amounts to €1,000 in total, which is composed of €730 and €270 for the smaller component. Does it make sense to pay off the smaller component as quickly as possible first or to pay off the larger component with €228,000 as quickly as possible first.

Do both components have the same term and interest rate?

If you eventually pay off the small installment with special repayments completely, you at least gain flexibility regarding the future installment amount (either continue paying €1000 to repay the larger block or only pay €730 and let the loan run normally) and you do not need the bank's approval for this.

For understanding: Why did you do it this way if the basic data is the same? Usually, different installments are combined due to different terms or because of the loan-to-value ratio, which then affects different conditions.

That was mandated by the bank. Ultimately, I am only interested in the 20 years with 2.01% effective. The house is already half paid off and after the construction of the house I still have some equity left. I would just like to sensibly invest that in repayment over the next few years.

That was specified by the bank.

Certainly a Volksbank, right?

@nordanney Is that a Volksbank peculiarity? Or why are you asking so specifically about the Volksbank?