We present the cosmological analysis of the configuration-space anisotropic clustering in the completed Sloan Digital Sky Survey IV (SDSS-IV) extended Baryon Oscillation Spectroscopic Survey (eBOSS) DR16 galaxy sample. This sample consists of luminous red galaxies (LRGs) spanning the redshift range $0.6 < z < 1$, at an effective redshift of $z_{rm eff}=0.698$. It combines 174 816 eBOSS LRGs and 202 642 BOSS CMASS galaxies. We extract and model the baryon acoustic oscillations (BAO) and redshift-space distortions (RSD) features from the galaxy two-point correlation function to infer geometrical and dynamical cosmological constraints. The adopted methodology is extensively tested on a set of realistic simulations. The correlations between the inferred parameters from the BAO and full-shape correlation function analyses are estimated. This allows us to derive joint constraints on the three cosmological parameter combinations: $D_M(z)/r_d$, $D_H(z)/r_d$ and $fsigma_8(z)$, where $D_M$ is the comoving angular diameter distance, $D_H$ is Hubble distance, $r_d$ is the comoving BAO scale, $f$ is the linear growth rate of structure, and $sigma_8$ is the amplitude of linear matter perturbations. After combining the results with those from the parallel power spectrum analysis of Gil-Marin et al. 2020, we obtain the constraints: $D_M/r_d = 17.65 pm 0.30$, $D_H/r_d = 19.77 pm 0.47$, $fsigma_8 = 0.473 pm 0.044$. These measurements are consistent with a flat $Lambda$CDM model with standard gravity.
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