Whats the difference in Cisco IP switches and Cisco MDS switches.Does looping issue happen in MDS switches too?

Cisco MDS Switches used for SAN Connectivity (Fiber etc...) while IP Switches used for any IP connectivity

The Cisco MDS9222i features a compact3-rack-unit (3RU) form factor, expansion slot capability, comprehensive network security framework modularity, and IPv6 readiness. It is an ideal solution for departmental and remote branch-office SANs requiring director-class, intelligent services solutions at a lower cost.